• by Wayne Friedman , December 4, 2008

Consistent with other media companies' cutbacks, Viacom Inc. is laying off 850 jobs, or 7% of its workforce.

In addition, the company is suspending senior executives' salary increases for all of 2009. This restructuring will result in a writedown, a pre-tax charge of between $400 million and $450 million. Viacom says the moves will result in a pre-tax savings of $200 million to $250 million in 2009.

Viacom President and CEO Philippe Dauman said in a release: "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."

Other media companies have either announced or mulled cutbacks, considering the prospect of a long-term weaken economy. Media stocks, along with virtually all other U.S. publicly traded companies, have been hit with massive 50% to 60% reductions in their stock prices over the past year.

Yesterday, it was reported that NBC Universal has begun cutting staff: 30 staffers in the network's TV advertising sales, including ad sales research. The news was reported by Television Week.

The NBC layoffs are part of an overall $500 million cutback plan that was laid out two months ago by Jeff Zucker, president/CEO of NBC Universal.