"As a result of the challenging economics of local television and anticipated increased competition from BBC Scotland, we have taken the hard decision to close our loss-making STV2 channel to focus our future content investment on STV and the STV Player".
STV2 which has offices at Fountainbridge in Edinburgh, Glasgow and a base in Aberdeen and Dundee will close down at the end of next month as management say it is making a loss.
The cuts follow an announcement by BBC Scotland on Tuesday that its new TV channel for Scotland will be on air from next February, subject to Ofcom approval.
The new organisational structure will create three distinct divisions across broadcast, digital and production, each with its own managing director.
The withdrawal marks a broader shift toward online content at the broadcaster which has just published its three-year growth plan that sets out how it intends to draw over a third of profits from beyond linear TV advertising by 2020.
It has also launched a News 2020 change programme which will deliver savings of £1 million per year, with 34 job losses.
Pitts was appointed in January this year after leaving ITV, where he was managing director of online, pay TV, interactive and technology.
STV said its growth strategy aims to establish it as Scotland's "home of news and entertainment".
The move results in 59 job losses across STV News and STV 2. Along with today's announcement the Chief Technical Officer Alistair Brown announced his departure and Paul Hughes who was Head of Programmes at STV has announced on LinkedIn that he had already made a decision to leave the company. STV's head of news will also be replaced.
Pitts said: "This is a positive vision for STV that will re-establish the company as a creative force in Scotland and beyond".
John Toner, national organiser of the National Union of Journalists Scotland, said the STV cuts were a "devastating blow", and said that any compulsory redundancies will be "strongly opposed".
STV has laid out its plans for the next three years, which will see the Scottish broadcaster axe its STV2 channel to make room for more digital initiatives.
"We will exploit STV's unique producer-broadcaster status to attract the best creative talent and showcase new formats and ideas for the United Kingdom and global markets", he added.
"We will invest in creative talent, new original programming and digital to ensure STV becomes Scotland's home of news and entertainment and delivers long-term value for advertisers, shareholders and viewers alike".
"News is fundamental to the STV brand and we remain committed to offering the best news service in Scotland".
He thanked the STV2 team for everything they had achieved.