Channel 4 chief executive Mark Thompson has announced major job cuts at the TV station in a bid to cut the organisation's overheads.

The radical restructuring, involving up to 200 job losses, is intended to free more cash for programmes.

The key to winning is the strongest and richest possible schedule

Mark Thompson

He told Channel 4 staff that, if approved, the proposed moves would reduce the channel's overheads in 2003 by 33% or �36 million.

Mr Thompson said that 122 posts would be lost at the main Channel 4 service, followed by further job losses at the its commercial arm, 4 Ventures.

Consultation

The job losses are in addition to 50 redundancies at Channel 4's film subsidiary, FilmFour, announced in July and a further 48 posts cut from across Channel 4 and 4 Ventures in the autumn of 2001, in response to a fall in advertising revenue.

All the proposed job losses will be subject to a statutory 90-day consultation period with staff.

Mr Thompson told staff: "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."

Thompson says he is transferring cost savings to programmes

There will also be a shake-up of the channel's senior management, with the number of executive board directors being reduced from seven to five.

Current managing director David Scott will become deputy chief executive, and Rob Woodward, currently managing director of 4 Ventures, will also take on the role of commercial director of Channel 4.

Director of programmes Tim Gardam is to become director of television, with editorial responsibility for all Channel 4's television services, including E4.

Channel 4, which on Tuesday announced its highest programme budget to date - �430m for 2003 - has recently been hit by losses.

"The key to winning is in commissioning the strongest and richest possible schedule," Mr Thompson said on Thursday.

"Every penny we can transfer from our costs into the programme budget helps us to do that."