Sky has warned that job losses could follow its £1.6 billion takeover of ITV’s media and entertainment business as the company targets £200 million in annual cost savings.
The broadcaster, which employs around 20,000 people across the UK, said redundancies are likely in corporate and commercial departments where roles overlap with ITV. However, it has not disclosed how many positions may be affected.
ITV’s media and entertainment division currently employs around 2,400 staff.
The acquisition covers ITV’s free-to-air television channels and its streaming platform ITVX but excludes ITV Studios, the production arm behind hit programmes including *I’m A Celebrity… Get Me Out of Here!*, *Mr Bates vs The Post Office*, *Coronation Street* and *Emmerdale*.
Sky chief executive Dana Strong stressed that workforce reductions are not expected to make up the bulk of the planned savings, which are due to be achieved within three years.
“The majority of the cost reductions are expected to come from technology, marketing, and overseas content,” she said.
“There is some duplication in roles in corporate functions and commercial functions as there is when you bring, inevitably, two organisations together.
“But it’s the minority of the synergy.”
Sky said it remains too early to determine the total number of jobs that could be impacted.
The companies argue that the deal will create a stronger British media group capable of competing with global streaming giants such as Netflix, Amazon and YouTube.
Negotiations over the takeover have been ongoing since late 2025, with both companies viewing the agreement as a major shift for the UK television sector.
Following the transaction, ITV Studios will become a standalone global content company listed on the London Stock Exchange. It will continue supplying programmes to the newly combined Sky-ITV business under a long-term agreement.
Sky has pledged to invest at least £2.1 billion in content partnerships between 2028 and 2032.
Under the terms of the agreement, Sky will pay £1.2 billion for ITV’s broadcasting arm and transfer ownership of Love Productions, valued at £200 million, to ITV. ITV could also receive an additional payment of up to £200 million within two years, depending on advertising performance.
ITV chief executive Dame Carolyn McCall acknowledged that there are no guarantees over jobs, but said both organisations would review overlapping positions.
She added that the companies remain “hopeful” the transaction will secure regulatory approval, although she expects a “lengthy” and “comprehensive” review lasting between 12 and 18 months.
McCall said the television landscape has “changed fundamentally”, with traditional broadcasters increasingly competing against international streaming platforms.
Strong described the deal as “a defining moment for British media”.
“Bringing Sky and ITV Media & Entertainment together combines the very best of free-to-air television, pay TV and streaming, ensuring viewers across the UK continue to enjoy outstanding British programming in a rapidly changing world,” she said.
“ITV will remain a public service broadcaster at the heart of British life, and we’re excited about the future we can build together.”
ITV chairman Andrew Cosslett said the merger would “create a UK champion with the scale and resources to better compete with global streaming platforms”.
Meanwhile, Sky will become an indirect 20% shareholder in ITN, the news producer behind programmes including “Good Morning Britain, News at Ten” and regional London news services.
Dame Caroline Dinenage, chair of the Culture, Media and Sport Committee, called for close regulatory scrutiny to ensure the takeover is “in the best interests of audiences”.