ITN to freeze pay and cut jobs after pre-tax profits fall

ITN will freeze staff pay next year and cut 15 jobs in a bid to bring the company back to profitability after it recorded a pre-tax loss of £3m in the first six months of the year.

The broadcaster will redeploy a further 14 posts, according to the Guardian, and is also set to close its final salary pension scheme, which has contributed to a pension deficit of more than £40m.

An ITN spokeswoman said: “The measures we have announced today are designed to ensure the long-term future of the business, move the company back to profitability, safeguard employment, and position the group for growth.

“We remain ambitious for the future and we are confident that these actions will get us back on a firm financial footing.”

ITN’s chief executive, John Hardie, met with staff today to outline a new divisional restructure for the business. A voluntary redundancy scheme closes on 4 December.

The firm will also overhaul its defined contribution pension scheme for staff joining after 2002, which will see the employer pay 2% more than employees into the scheme, up to a cap of 10%.

The company made a pre-tax profit of £4.1m in 2008.

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