Granada has unveiled a radical restructure of its operations
following disappointing interim results, which showed falling turnover
and a 5.4 per cent year-on-year downturn in national advertising
The media company, which was structured into four divisions (Granada
Broadband, Granada Creative, Granada Enterprises and Granada
Broadcasting) will now be split into only two operations.
Simon Shaps, the managing director of Granada Broadband, becomes the
managing director of Granada Content, which will house the creative and
broadband divisions. A managing director is now being sought for Granada
Platforms, which will incorporate the sales division, Granada
Enterprises and Granada Broadcasting.
Industry sources say Mick Desmond, the chief executive of Granada
Enterprises, is a strong internal candidate for the Granada Platforms
role, while Stuart Butterfield, the head of Granada Broadcasting, is
expected to leave later this year.
Steve Morrison, the chief executive of Granada, said: "Simplifying our
businesses into two clear divisions makes us stronger and fitter for
Granada's chairman, Charles Allen, said that the company planned to cut
costs by pounds 60 million, which could see up to 100 jobs cut. He also
revealed that ONdigital, Granada's joint venture with Carlton
Communications, is willing to take on a third partner. It is believed
that three companies are in the frame: BT, Centrica and ntl.