STV is set to cut 60 jobs, axe its north of Scotland television news programme and move gradually out of Edinburgh.
The broadcaster is seeking £2.5m of savings by next year, after announcing a £200,000 loss in the first six months of 2025.
The company currently provides two distinct news services, one for the central belt based in Glasgow, the other for the north based in Aberdeen. The proposal is for one programme from Glasgow covering stories from across Scotland.
First Minister John Swinney said “sustained media engagement” was a “vital part of our democracy”.
The cancellation would require permission from the regulator Ofcom, which is expected to begin a consultation shortly.
The announcement comes after advertising revenue fell to £45m compared to £50m in the same period last year.
In a statement, STV chief executive Rufus Radcliffe said: “The way audiences consume news content is changing rapidly and fundamentally.
“Our output needs to respond to that as linear viewing declines and digital consumption of news increases.
“The decisions we are making aim to protect our news service, which we are incredibly proud of, to ensure it is in the best possible shape for the future and changing consumption habits.”
In July, STV’s share price fell by a third after it warned that profits would be lower than previously expected.
Its other main Scottish output is a current affairs programme, Scotland Tonight, shown four nights a week.
The National Union of Journalists (NUJ) said it would oppose the “devastating” cuts.
NUJ Organiser for Scotland Nick McGowan-Lowe said: “While there is no doubt that STV faces financial pressures and a decline of studio productions, none of that can be blamed on the hard-working journalists.
“These proposed cuts threaten the high quality of local and national journalism produced by STV News staff across Scotland.”
STV reporter Tara Fitzpatrick and presenters John MacKay and Kelly-Ann Woodward will be concerned that STV has announced proposed cutbacks.
Two local women STV journalists, Kelly Ann Woodland and Tara Fitzpatrick, will be amongst those concerned about their jobs.
Wider economic issues
The challenges facing STV reflect difficulties across the TV industry, but the plan to stop the north of Scotland programme will be hugely controversial.
It is the last part of the legacy of Grampian Television – which once provided a range of local programmes for the north as a separate company to STV.
The company served the area from 1961 until it was bought by STV in 1997.
The broadcaster’s production business, STV Studios, makes programmes for a wide range of broadcasters and streaming services.
It also recently announced plans for STV Radio, a music station that is due to go on the air in the next few months.
Advertising revenue is falling, partly because viewers are turning away from traditional broadcast TV and partly because of wider economic issues.
This also means that many commercial channels are commissioning fewer programmes.
Pensioner Gordon Kennedy, 74, described the proposals as a “disgrace”.
He told BBC Scotland News: “I’m not very happy. I watch the programme every night.
“It’s very good. Good presenters. Good information.”
Mr Kennedy said he also got his news from the papers and online.
Gordon Kennedy said he was unhappy at the plans
Friends Melody Tobin and Adele Beattie said people got their news in different ways.
“At my granny’s, that’s about the only time I watch the news,” Melody said.
“I think it’s really important to a lot of people – younger people not so much in the way that they get their news.”
Adele added: “When I wake up in the morning, my mum and dad will have the TV news on.”
Linda Beattie said: “It’s just a sign of the times isn’t it? I would say everybody now looks at online.
“It is a shame though. I think we should still have our own news.”
Tymek Kibis, 19, added: “I don’t really watch television news. I feel like social media has become more popular.
“People’s attention spans have become shorter.”
Responding to the reports that STV is to cut 60 jobs, equivalent to around 10% of the company’s workforce as it looks to slash costs by a further £3 million per year, Scottish Liberal Democrat leader Alex Cole-Hamilton, left, said: “I am disappointed to hear that STV are planning job cuts as well as discussing removing regional STV news programmes. People want to know what is happening in their area, not rely on a one size fits all model.
“In this era of social media misinformation, people need trusted sources of news, based in communities across Scotland, more than ever. In an election year in particular, it is essential that failing governments are held to account and I believe STV’s journalists can be proud of their work to inform and challenge.
“While I appreciate that advertising revenue is not what it once was, I think viewers may raise an eyebrow that more than £5m a year has been paid out in dividends, yet cuts are on the cards.
“Likewise given that we are in the era of Spotify and Apple Music, bosses had better be extremely confident that a new music station will rapidly turn a profit. I will be writing to Chief Executive Rufus Radcliffe to make these points and press for jobs to be maintained.”