Viacom announced today staff cuts as part of cost-saving initiatives spurred by the economic downturn. Seven percent, or 850 positions, will be cut across all divisions of the company. Viacom will also suspend senior level management wage increases in 2009. These actions are expected to bring in pre-tax savings of $200 million to $250 million next year.
Viacom president and CEO Philippe Dauman said, ‘The steps we have taken over the last two years, including those we are announcing today, have put us on very sound financial footing with a strong balance sheet and substantial cash flow. This affords us the flexibility to successfully deal with challenges while also capitalizing on the opportunities that inevitably arise in uncertain times. We are committed to continuing this prudent course and aggressively managing our businesses for long-term growth.’