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Read more with google mobile : Viacom cuts 7 pct of staff, suspends some pay raises | Entertainment |
My Profile Holiday Gift Guide Gift ideas & reviews for this holiday season Start Browsing You are here: Home > News > Entertainment > Article Home Business & Finance News U.S. Politics International Technology Entertainment Film Music People Television Arts Industry Sports Lifestyle Oddly Enough Environment Health Science Special Coverage Video Pictures You Witness The Great Debate Blogs Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters You Witness News Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Viacom cuts 7 pct of staff, suspends some pay raises Thu Dec 4, 2008 2:54pm EST Email | Print | Share | Reprints | Single Page [-] Text [+] By Paul Thomasch NEW YORK (Reuters) - Viacom, the owner of MTV Networks and the Paramount movie studio, said on Thursday it will cut its workforce by about 7 percent, or 850 positions, underscoring the advertising slump afflicting most major media companies. Viacom also plans to suspend salary increases for senior level management in 2009 and will write down the value of certain programing and other assets. The cuts, which had been rumored for some time, come as Viacom's stock price has slumped about 67 percent this year, an even steeper drop than other media industry powers such as Time Warner and News Corp. Viacom shares dropped 11 cents, or less than 1 percent, to $14.40 on the New York Stock Exchange following the news. Across media, companies are struggling in the face of an advertising downturn that is shaping up to be the worst since 2001, when the bursting of the Internet bubble and the Sept 11 fallout dramatically slashed spending on marketing and advertising. Viacom has also been fighting against poor ratings of two of its cable TV networks, MTV and VH1, while Paramount recently scaled back its film releases to help cut costs. Between the job losses, salary freezes and write-downs, Viacom is expecting to see pre-tax savings of $200 million to $250 million in 2009. "We are moving rapidly to adapt to the challenges presented by the current economic environment," Chief Executive Philippe Dauman said in a statement. In addition to the broader advertising slump, Viacom's controlling shareholder and executive chairman Sumner Redstone faces a deadline to repay $800 million in debt associated with his main investment vehicle, National Amusements, by the end of the year. In October, Redstone was forced to sell about $230 million of his stock in Viacom and CBS Corp, the other key component of his media empire, to meet debt payments. Since those sales, Redstone has pledged he will not divest any more shares of Viacom or CBS. (Reporting by Paul Thomasch and Jui Chakravorty Das; Editing by Derek Caney) © Thomson Reuters 2008 All rights reserved Share: Del.icio.us Digg Mixx My Web Facebook LinkedIn Also on Reuters Slideshow Little people, big shows in Liaoning province, China Less sex, more housework for retired Americans Video Lighting of the Rockefeller Center Christmas Tree in NYC Editor's Choice Slideshow A selection of our best photos from the past 24 hours. 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Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.
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Friday, 5 December 2008 - Viacom cuts 7 pct of staff, suspends some pay raises
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