rumour has it that following predictably poor earnings, Viacom layoffs are coming. But first Viacom will cut costs by killing the company’s typically debauched holiday party and requiring employees to take two vacation days between December 22 and January 1, according to a memo from CEO Philippe Dauman and CFO Tom Dooley obtained by Gawker:
From: Offices of Philippe Dauman and Tom Dooley
Sent: Monday, November 03, 2008 5:44 PM
Subject: Business Update
Today we reported Viacom’s third quarter financial results. As we indicated in last month’s email, the downturn in the global economy had a significant impact on our business. But the good news is that, while we may not be immune from these uncertainties, our results prove the benefit of our diverse revenue streams and enduring brands. Here are a few key results:
o Viacom’s overall revenues in the quarter grew 4 per cent over Q3 2007 to $3.41 billion, led by a 6% increase in Media Networks revenues.
o Operating income was $689 million, a 15-per cent decline versus last year’s results.
o Adjusted diluted earnings per share were $0.55, which is at the high end of the range we recently projected.
Our third quarter press release with more details can be found on viacom.com.
We are all working harder and thinking more creatively about how to continue to grow our business while adapting to a rapidly changing environment. Last month, we met with the senior leadership of each division for our annual budget meetings. We were impressed with their plans and believe that the strategic road they each laid out is smart, ambitious and will take our Company to a new level of success. The months ahead won’t be the easiest we’ve seen but whatever the future brings, we know we can count on you to continue to work hard and do the great job that you have always done.
As the holiday season approaches, we also want to encourage you to spend time with your family and friends, which is even more important in these uncertain times. In fact, instead of the traditional division and corporate holiday parties, this year we are giving everyone two additional vacation days to be used between December 22 and January 1. You’ll hear from your leadership about the holiday schedule in your division shortly, so you can all look forward to having a little extra time to relax and recharge for the coming year.
Finally, we want to urge all of our employees in the U.S. to be sure to vote in tomorrow’s Presidential election. This is an historic moment for so many reasons and it is important that we all make our voices heard.
Thank you all for your continued hard work and dedication.
Philippe and Tom
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