This is what I really dislike about business news. It's all about the bottom line. Viacom announced that it is cutting 850 jobs and freezing salaries ( big whoop). But instead of focusing on the people or the job functions that are being eliminated, Viacom is focusing on the bottom line and spinning why this is good news for the business.
From Advertising Age
The job cuts and salary freezes are expected to generate $200 million to $250 million in cost savings in 2009. The company will take a charge of $400 million to $450 million in the fourth quarter. [...]Despite all the cuts, Mr. Dauman remained optimistic about Viacom's prospects for 2009. "Viacom's outstanding brands, diverse revenue streams and global footprint all provide a significant and enduring foundation for future growth," he said. "The steps we have taken over the last two years, including those we are announcing today, have put us on very sound financial footing with a strong balance sheet and substantial cash flow. ."
So who is getting laid off and who will do their job? That's what I am interested in knowing about. What is it going to be like for the people who are left...besides not getting a raise next year...how much extra work will they be expected to do to help provide that significant and enduring foundation for future growth.