Viacom owner to scrap 850 jobs

The US media concern Viacom, which owns amongst other things the music channel MTV and the Paramount film studios, has announced plans to cut 850 jobs, about 7 percent of the workforce,  as a result of the financial downturn.

Senior managers in the US will not have their salaries raised in 2009. The plan is designed to save between 200 and 250 million dollars.

Last month, Viacom announced a 37 percent fall in profits in the third quarter due to falling advertising income. It’s estimated that the total advertising spend worldwide will fall by 4 percent in 2009, but in the US the fall is expected to be more than double that, at 8.9 percent.

Source: Media Network