In another sign of the times, Viacom (NYSE: VIA) will cut roughly 850 jobs, approximately 7 percent of the company’s workforce across all divisions during yet another overhaul of the company’s structure. The company also will write down assets and programming. Viacom estimates that the combination of write downs and restructuring will result in Q408 pre-tax charge of $400-$450 million—and pre-tax savings of $200-$250 million in 2009. Senior-level management pay raises have been suspended for 2009 (no mention of bonuses).

Update: I’ve confirmed that the layoffs, which are being made now, not only cut across divisions but run at least as high as EVP—possibly higher—and are meant to be global and domestic. No official numbers by division but MTVN is likely to take the biggest hit. This isn’t a corporate restructuring and a spokesperson said “how it is playing out is being determined by each division.” Viacom has been working on the plans for at least a month, causing intense speculation. Those affected are being notified “right away” and will remain on the payroll at least through year’s end; severance will kick in after that.

(Pic courtesy: mag3737)

We have the full memo from CEO Philippe Dauman and CFO Tom Dooley, embedded after the jump

Dear Colleagues:

With less than a month until the close of 2008, our entire organization continues to do everything possible to anticipate and adapt to the unprecedented changes affecting all our businesses.  We know it hasn’t been easy and we couldn’t be more proud or more appreciative of how you have risen to the challenge.

Even in these tough economic times, Viacom has a strong hand to play. We have a broad stable of outstanding brands, diverse revenue streams and an impressive global footprint, backed up by exceptional financial strength.  Added to that we have talented employees, extremely able leaders and a creative ingenuity that runs deep.

Unfortunately, our advantages and best efforts can’t completely protect Viacom from the very serious and broad-based challenges of this economic recession.  Viacom’s long-term health will depend on our shared commitment to adapt, to innovate and to make difficult choices. To compete and thrive, we need to create an organization and a cost structure that are in step with the evolving economic environment.

Today, we are announcing a company-wide restructuring plan that includes staffing reductions in all divisions.  This will result in a reduction of our worldwide workforce of approximately 7 percent, or about 850 positions. We are also suspending salary increases for the Company’s senior level management in 2009.  In addition, after a comprehensive review of our operations, we will write down certain programming and other assets.  These three actions will bring us significant cost savings and other efficiencies.

Top managers at every part of the company worked thoughtfully, carefully and compassionately to create a leaner, more focused organization.  It was not an easy task, but it was an essential step that will keep Viacom at the competitive forefront today and tomorrow. Department heads and supervisors will provide you with more information about the changes that will be taking place in your division.

Saying goodbye to friends and colleagues is always difficult, particularly when we have shared so much. Those of you who will be leaving should be proud of your contributions, which we will always respect and appreciate.  We thank you and we wish you the best.

The true measure of an organization is how it deals with change and overcomes challenges.  We know that you are up to the task and that together we will push through the difficulties ahead and go on to even greater achievements.

We truly appreciate your continued commitment and hard work and we thank you for everything you do each day. 

Sincerely,

Philippe and Tom