Viacom, the owner of MTV Networks and Paramount Pictures, is laying off 7% of its workforce to cut costs during the economic downturn.
The company said on Thursday that about 850 people would lose their jobs as it tries to save $US250 million a year.
Viacom also said it was freezing the salaries of senior management. The restructuring is expected to incur charges of over $US400 million.
Advertising revenues across the company's cable stations, including MTV and Nickelodeon, have dropped sharply.
Viacom's profits were down 37% in the last quarter and the share price is down over 60% this year.
