Viacom Begins New Round Of Layoffs *Updated*

Viacom has started another round of staff layoffs as part of its ongoing cost-cutting effort, TheWrap has learned.

The job cuts, which are expected to not reach triple digits, will be focused on support employees — so not those directly involved in content creation. The affected staff represents less than 1 percent of the company’s 10,000 employees.

Update (2/7): It is thought that Viacom is cutting around 100 jobs.

Viacom Chief Executive Officer (CEO) Bob Bakish addressed the “changes across the organization” in an internal memo obtained by TheWrap Tuesday.

“While these changes didn’t impact a large percentage of our workforce, I know they were difficult nonetheless,” Bakish wrote to staff. “We are saying goodbye to some great team members, some of whom have been here for a long time, and have made an important impact on this organization. We’re so grateful for their contributions, and want to assure you we’re taking many steps to make their transitions easier.”

Viacom owns Nickelodeon, Comedy Central, MTV, the recently rebranded Paramount Network, BET, VH1, CMT and other cable channels. The publicly traded corporation is also home to movie studio Paramount Pictures.

Viacom used to be part of CBS. The two companies are considering remerging into one again.

Viacom was created by CBS back in 1952 to syndicate old TV series as CBS Films. That division was spun off as Viacom in 1971. National Amusements bought Viacom in 1986 and went on to buy CBS in 2000. The two companies split again in 2006.

But now, both companies have formed special committees to consider "strategic alternatives," which includes a potential deal. The talks started after Shari Redstone — daughter of 94-year-old media mogul Sumner Redstone — renewed a campaign to reunite the companies, following gaining effective control over her father’s companies. The Redstones control CBS and Viacom, with a roughly 80 percent controlling stake in each, through National Amusements.

Viacom is set to report its third-quarter earnings on Thursday, February 8. Bakish stated during Viacom’s last earnings call in November 2017 that the company was evaluating some cost-cutting efforts.

Read the Bakish’s memo in its entirety below.

"Team,

I know there’s been a lot of news in the past week – over the last year, in fact – about change (or potential change) in this company. I think it’s important to remember that so much of this change, while not always easy, has made us stronger. We’ve brought in new talent, re-energized our brands, rebuilt relationships – both inside these walls and out – and taken many other steps to strengthen and evolve our company for the future.

And, yes, sometimes change means making tough decisions – like today, where we made some changes across the organization. While these changes didn’t impact a large percentage of our workforce, I know they were difficult nonetheless. We are saying goodbye to some great team members, some of whom have been here for a long time, and have made an important impact on this organization. We’re so grateful for their contributions, and want to assure you we’re taking many steps to make their transitions easier.

It’s also very important to understand how purposeful our changes have been. It isn’t just about cutting costs – although we want savings, too, and more flexibility to invest in new areas. These moves are really about our continued efforts to create a more agile and efficient organization that can thrive in a time of constant change. I’ll be giving you more context around all of this in our Bob Live on Thursday, and can take any questions you have.

I’m so proud of all we’ve accomplished over the past year, and couldn’t be more excited about the opportunity the change in our industry creates. I want us to be an organization that is energized by reinventing this business, and has the capability and capacity to constantly transform. Let’s continually push ourselves to discover what’s new, and what’s next. Let’s get out of our silos and learn from each other, and create the new faster. Let’s embrace change and possibility.

Thank you for supporting each other through this process, and for your continued focus in driving us forward.

Best,
Bob"

This isn't the first time that the parent company of Paramount Pictures and Comedy Central underwent a round of job cuts. Last September, the company eliminated about 20 positions.

Meanwhile, the company is also looking to add another youth-skewing property to its portfolio. Viacom is rumored to be acquiring Vidcon, an annual conference for online video creators and their fans.

The move follows Viacom’s acquisition of WhoSay, an invitation-only social network for celebrities that has evolved into a creative-marketing agency that produces branded content.

The staff reductions come almost exactly one year after Bakish unveiled an ambitious reorganization plan for Viacom. A significant element of the revamp plan came to fruition last month with the relaunch of cable channel Spike TV as Paramount Network, which Viacom has attempted to position a platform for premium scripted programming with new shows such as “Waco” and “Yellowstone.”

Bakish was named CEO in December, 2016, following the ouster of former embattled top executive Philippe Dauman amid a power struggle for control of ailing mogul Sumner Redstone’s media empire.

The layoffs, first reported by Cheddar.

Originally published: Tuesday, February 06, 2018.

Additional source: The New York Business Journal, Variety, Deadline.