Sumner Redstone’s Viacom is having financial problems. Its companies from Paramount Studios to MTV have been laying off workers.
There has been much speculation as to the future of Viacom after the ultimate departure of its long time nonagenarian leader. Even if Mr. Redstone lives to be 120, he is not seen as able to serve as a corporate titan for much longer.
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But will there be much of a company left after his inevitable departure?
Viacom’s cable networks have seen shrinking ratings and shrinking profits over the years.
To cut costs, Viacom chose to combine the operations of many of its networks. This included Comedy Central and Spike with MTV, VH1 and Logo, and the combination led to inevitable job cuts.
Yesterday Paramount Pictures let go of as many as 40 employees.
The studio said in a statement, “The personnel changes made today are part of Viacom’s previously announced restructuring effort. These changes are designed to realign resources and create efficiencies in line with the evolving business environment.”
The children’s cable channel Nickelodeon is also laying off people. “As announced, we are in the process of restructuring, and there will be employees leaving the company as a result, ” a Nickelodeon spokesperson said Wednesday. “We are so grateful for the contributions they have made to Viacom.”
In a very similar statement a Viacom spokesman said, “As announced, we are in the process of restructuring and there will be employees leaving the company as a result. We are so grateful for the contributions they have made to Viacom.”
Viacom CEO Philippe Dauman told investors of the expected layoffs in a January conference call when he reportedly said, “We are rapidly adapting our processes and business as well as human, financial and technological resources to increase focus on new high potential areas. It is clear that this transition will require some organizational realignment, as well as rationalization of content that no longer meets our goals.”
