ITV boss Michael Grade today tore up the promises he made after he was parachuted into the Coronation Street broadcaster two years ago.

"These are the worst conditions I have ever seen in more than 30 years of broadcasting," the executive chairman of ITV declared.

He scrapped his own targets, which he set just 18 months ago, of doubling ITV's revenues from content to £1.2 billion by 2012 and online revenues of £150 million by next year.

Asked if he could survive this latest setback, Grade said: "I think everybody at ITV feels under pressure. We will get through this recession and be ahead when conditions turn around."

Grade also told investors they would be getting no dividend for the foreseeable future, and refused to rule out asking them for more cash to keep the business going.

The cost-cutting he announced today was further and deeper than the stock market had been expecting. But despite this, ITV shares - which one fund manager described as "too small to bother with" - fell 1p to 22¾p.

Grade said 600 jobs would be axed and another 70 people who were already leaving would not be replaced.

"We are taking cuts across the board and most of them will in central management," he added.

As was widely predicted, websites Friends Reunited and Scoot have been put up for sale, but will fetch far less than they cost. ITV Local, an attempt to bring regional news to viewers over the web, is also being scrapped. Grade said he is looking at his options on ITV's role in Freeview and digital terrestrial broadcasting.

The commercial broadcaster today posted a £2.7 billion pre-tax loss after a £188 million profit in 2007. Headline profits dropped 41% from £281 million to £167 million. The huge swing into the red was a result of a £1.6 billion writedown on the original value of the merger between Carlton and Granada, and another £1.1 billion on the current value of the online and broadcasting businesses.

The company has also taken a £50 million hit on what it called "onerous sports rights contracts". It has been widely criticised for overpaying for Formula One and the FA Cup.

ITV said advertising revenue for the first three months of the year was down by 17% but was likely to fall further in April.