Viacom Cuts Workforce

NEW YORK, December 4:
Viacom has announced 850 layoffs across its operations, which is about 7
percent of its workforce, and is also suspending senior management salary
increases for 2009.

The company is also set to
take write-downs on programming and other assets whose value has declined,
though no details have been provided.

Viacom said the
restructuring is designed "to better align its organization and overall
cost structure with evolving economic conditions."

Philippe Dauman, Viacom's president and CEO, commented: "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."

The restructuring and
write-downs will result in a pre-tax charge against earnings of $400 million to
$450 million in the current fourth quarter. They will lead to pre-tax savings
of $200 million to $250 million in 2009.

—By Kristin
Brzoznowski