A
drastic reduction in advertising levels has led to job losses and cost cutting
in the media sector.
Economic
uncertainty has caused a sharp decline in advertising spending, which in turn
has prompted two of the industry’s biggest names to take action.
SMG,
the Scottish media group which owns Virgin Radio and ITV franchises, has
offered 1,700 staff voluntary redundancy following a 30 per cent drop in
profits. SMG has already frozen recruitment and management salaries.
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The
Financial Times has also reported that ITV’s biggest company, Granada, which
has already announced that it will axe 100 management positions, is to freeze
pay among its 5,000 staff.
