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Viacom to cut 850 jobs, freeze some salaries, write down assets in response to economy
Amid an ongoing debt crisis at controlling shareholder Sumner Redstone's movie theater company, Viacom Inc. plans to slash about 850 jobs -- 7 percent of its work force -- and freeze some senior-level salaries.Viacom, which owns MTV Networks, BET Networks and Paramount Pictures, said the cuts are a response to the global economic downturn. The company said, without specifying, that it also plans to write down the value of some programming and other assets. But it maintained it has a "strong balance sheet and substantial cash flow." The job cuts, write-offs and suspension of some raises in 2009 are expected to generate pretax savings of $200 million to $250 million next year. The company will take a restructuring charge of $400 million to $450 million, or 42 cents to 48 cents per share, before taxes in the current quarter, which ends Dec. 31. Posted by: Fred 2008-12-05 |
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