U.S. entertainment group Viacom on Thursday announced that it was cutting seven percent of its workforce, and freezing senior executive pay amidst this global financial crisis. The elimination of the 850 jobs came as the giant, who owns Paramount Pictures, the MTV and BET networks, Comedy Central and other properties, said the restructuring would result in a charge of $400 to 450 million against its fourth-quarter results. The company said it expected the cost-cutting moves to result in savings of $200 to 250 million in 2009. Viacom said that the job cuts would be “implemented across all divisions of the company” and that “senior level management” salary increases were being suspended for 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 chief executive Philippe Dauman said in a statement. Viacom last month reported a 37 percent drop in quarterly net profit. Viacom shares were trading at 15.95 dollars on Wall Street at midday, a loss of 0.37 percent.
