My positive perspective on the media business was not allowed to last longer than a day. The Times reported that 1,300 people lost their jobs today at Viacom and NBC Universal.
Viacom announced their "cost saving initiatives" or cuts could save up to $700 million dollars for both companies in 2009. It is no surprise that the media would not go untouched with the economic problems straining the American people. Other news corporations are considering cost savings as well.
With the industry already struggling to keep up advertising sales and profits when people are looking to the Internet for their main news source, an economic blow seems to be deepening the wound.
I cannot say that I am surprised, but as I am currently applying for the print program, the loss of even more jobs does not allow for hope.
What infuriates me in this frugal time is when executives continue to receive bonuses and salary raises. The chief executive of Viacom, Philppe Dauman, received a raise this year, earning $2.5 million compared to last year's $2 million. Guess his bonus. It was nothing short of $7 million last year and is expected to be around $9 million this year.
If the media industry is hurting so much that it is necessary to fire over 1,000 people, why on earth are the executives earning more? Their business are not doing better. The economy is worse. Why are they not feeling the effects of a recession as well?
It seems to me they are willing to let the news industry fail before they take a salary cut...or even maintain the same salary. My question is why is no one holding them accountable when our future is on the line?
Source
Viacom's press release
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