Channel 4 is planning a round of job cuts as the broadcaster sharpens its focus on streaming services amid a downturn in TV advertising.

The company has told staff to prepare for jobs to be impacted as it looks to tighten budgets this year.

In a memo sent to staff this morning, chief executive Alex Mahon said the business needs to get into the “right shape and the right size for the digital world” for the next decade.

Like every organisation, we are having to deal with an extremely uncertain economy in the short term and the need to accelerate our transformation to become a genuinely digital public service broadcaster in the long term

“What we are doing now is accelerating our existing plans to weather the sharp and protracted advertising slowdown that has hit the whole industry,” she wrote.

“We have been working carefully to minimise the impacts on individuals… I am sorry that some job cuts will inevitably be involved.”

A spokesman for the group said: “Like every organisation, we are having to deal with an extremely uncertain economy in the short term and the need to accelerate our transformation to become a genuinely digital public service broadcaster in the long term.

“As a result, we need to continue to divest from our linear channels business and simplify our operations to become a leaner organisation.

“This will enable us to invest more in our digital future and in our remit to make distinctive and disruptive British content, increasingly focused on streaming and social channels.”

Channel 4, which receives its funding from advertising, has recently warned MPs that the level of TV advertising has fallen dramatically amid a shift in viewing habits toward digital and streaming services.

It had to cancel a handful of programmes, including SAS: Who Dares Wins and Steph’s Packed Lunch, as part of efforts to reduce costs.

Ms Mahon and other Channel 4 top bosses declined a pay rise and deferred their bonuses last year.

Linear advertising, meaning adverts for traditional TV, makes up about two thirds of the broadcaster’s total revenues, while digital advertising revenues make up 22%, according to its 2022 financial report.

The company said it wants digital to make up 30% of its total revenues by 2025 as it aims to significantly grow its online audience.

Non-advertising revenues, which includes partnerships and film revenues, have risen to make up 10% of the total income.

More than 500 staff joined the broadcaster over 2022, taking the total number of full-time employees to just less than 1,200.

Meanwhile, Channel 4 has pledged to grow its spending in the “nations and regions” as part of efforts to “rebalance” its economic impact away from London.

Some 485 roles were located outside of London at the end of 2022, which Channel 4 said will continue to increase over the next few years.