Viacom announced plans to eliminate 850 jobs, about 7% of its work force, and freeze senior level salaries for 2009. The company will also write down values for certain programming and other assets. In all, the restructuring will result in a pre-tax charge of $400-450 million in Q4, but save $200-250 million in 2009.
"We are moving rapidly to adapt to the challenges presented by the current economic environment. The changes we are making in our organization and processes will better position Viacom to navigate the economic slowdown and generate sizable efficiencies that will help us to drive our business as the marketplace stabilizes and conditions improve,” Viacom President and CEO Philippe Dauman said,