The American media conglomerate Viacom has decided to lay off of its seven percent workforce to cut cost. The owner of MTV Networks and Paramount Pictures, Viacom stated that the company will slash 850 employees which will enable it to save $250 million a year. Apart from, it the salaries of the top management officials are also supposed to be reduced. The media giant has taken the recent decision when it found that the ad revenues across the company's cable stations, like MTV and Nickelodeon, have dropped sharply.

 

The global economic slow down has affected the company in the past few months. The profits of the company came down by 37 percent in the last quarter and the share price has fallen down over 60 percent this year. According to the president and chief executive of the company, Philippe Dauman, Viacom has taken the recent move with a view to improve the position of the company at the ongoing period of global economic slump. Viacom hopes of generating sizable efficiencies that can drive its business forward in the current situation.