Channel 4 Announces Most Radical Restructure In 20 Years
Channel 4 has today announced details of the most radical restructure in its 20-year history, including proposals for up to 200 job losses and a major shake-up of its senior management team.
The channel’s chief executive, Mark Thompson, told staff at a meeting earlier today that he plans to reduce the headcount of the main Channel 4 service by 122 posts. The job losses will form part of a radical cost cutting regime designed to deliver major savings that can be poured back into the channel’s programming budget.
He also warned of job cuts at the channel’s commercial arm, 4 Ventures, and announced plans for a major shake-up of the channel’s senior management and internal structure, which will see the number of executive board directors being reduced from seven to five.
Thompson said: “I know that we have a difficult process to go through, but I also believe that what we’re doing is turning a big corner and building a channel and an organisation that can really succeed. The key to winning is in commissioning the strongest and richest possible schedule. Every penny we can transfer from our costs into the programme budget helps us to do that.”
It is estimated that if the proposed restructure is approved it will help reduce the channel’s overheads in 2003 by 33% or £36 million on 2000 levels. The channel has already announced a 7.5% increase in its programming budget for 2003 to £430 million, the highest in its 20-year history (see Channel 4 To Invest £430m In Programming In 2003).
The management restructure will see a number of Channel 4’s senior figures take on additional roles within the company. David Scott, currently the channel’s managing director, will take on the role of deputy chief executive; Rob Woodward, managing director of 4 Ventures, will also become commercial director and the channel’s director of programmes, Tim Gardam, will become director of television with editorial responsibility for Channel 4’s entire portfolio of channels, including E4.
Director of finance and business affairs, Janet Walker, is leaving the company following the restructure and her responsibilities will pass to Scott. The newly merged business affairs and programme finance departments will report to Woodward, who will continue to manage 4 Ventures, but will also take responsibility for all of Channel 4’s commercial relationships, excluding airtime sales.
Airtime sales will remain under Andy Barnes, whose title will change from commercial director to sales director.
Channel 4’s managing director of marketing, Polly Cochrane, will take charge of a newly centralised marketing division, which will include all Channel 4 and 4 Ventures marketing and creative services teams, press and publicity and market planning.
Jonathan Thompson will become head of strategy reporting directly to Mark Thompson. He will also join the channel’s senior management team alongside Cochrane and Stuart Cosgrove, who is promoted from head to director of nations and regions.
Channel 4’s director of strategy and marketing, David Brook, has already announced his intention to leave the channel to set up a new brand and content development business (see Channel 4 Loses Director Of Marketing And Strategy).
This latest round of job cuts follows 50 redundancies at Channel 4’s film subsidiary, FilmFour Ltd (see Channel 4 Calls Time On Film Production Arm), and a further 48 posts cut from across Channel 4 and 4 Ventures in the autumn of 2001 in response to the downturn in advertising (see Ad Downturn Claims Jobs At Channel 4).
Channel Four: 020 7396 4444 www.channel4.com
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