Job losses in pipeline as Sky begins consultation process

It is understood that, as a result of an annual review of its internal operations, Sky Media managing director Nick Milligan has started a formal group consultation process with his 200 staff.

It is expected to lead to a further consultation with any individuals affected, meaning it will be a number of weeks before redundancies are instigated. By law, a company must consult with staff when 20 or more members are to be made redundant within a period of 90 days or less.

This suggests that Sky Media is considering lay-offs of that order. Sky Media would not confirm which departments would be affected, but agencies highlighted interactive sales as a particular likely area of focus.

One agency broadcast director said: "I think it is more internal people than external people and there will be some redefining of roles internally with staff redeployed in other areas. Interactive is where most of this will be, as red button is under some pressure because of online."

Sky Media's plans to create a more efficient structure coincide with continuing pressure on TV ad spend, as the effects of the global credit crunch impact on the UK economy.

One sales director said: "Everyone is making cuts and looking at efficiencies. If the TV market is down 2% or 3% for the year, it will have fallen off a cliff after a reasonable first half."

Another source said: "I am not surprised they are looking at redundancies, as there are some challenges ahead in the market as a whole."

Sky declined to comment when contacted by Media Week.