TVB on Friday announced that it's laying off around five percent of its staff in a bid to save HK$260 million in annual operating costs.

According to its latest annual report, in 2021 the broadcaster had 3,870 full-time workers.

In a letter to staff, executive chairman Thomas Hui said the station needs to adapt to market changes amid economic uncertainties brought by Covid, as well as new challenges faced by the TV industry.

"The company will adjust its human resources structure, and some jobs will be terminated and not replaced. At the same time, there will be stringent control of indirect costs such as rent and outsourced work expenditure," the letter read.

Hui said making the cutbacks was a difficult decision to take, and those who are laid off will be compensated in compliance with labour laws.

He also announced that to further save money, shows that are not popular or cost-effective will be scrapped and fewer productions will be outsourced.

The broadcaster issued a profits warning earlier this month, saying losses this year are expected to hit as much as HK$830 million, which would be the worst on record.