More Media Layoff/Shutdown Roundup: Time Inc., Forbes, NBC Universal, IAC

f you had any romantic notion that the beginning of holiday season meant an end to media layoff season, think again. In addition to the 850 Viacom (VIA) workers who are getting pink-slipped, this looks to be a particularly bad few days at Time Warner’s (TWX) Time Inc., where many of the titles that asked workers to quit last month will now be firing them instead.

The New York Post’s Keith Kelly has already reported that layoffs are in motion at People, Time and Sports Illustrated over the next few days; I am told that cuts are also coming to Fortune magazine today or tomorrow. Here’s a Sports Illustrated employee’s take on the situation there:

We are all expecting the hatchet Thursday or Friday. Morale is dismal. One colleague of mine, uber golf writer John Garrity, told several of us that he’s taking the package but will continue on for a while as a special contributor. We expect two or three photo editors to go, and two or three members of the Sport’s Illustrated Latino staff (the Spanish language SI publication, which posted a net profit of approx. one million in ’07 and broke even in ’08, was inexplicably shuttered). Also photographers are rumored to be being cut to half time service and members of our copy desk have been asked to take up to a 30% pay reduction for which they will work fewer hours. Charlie Leerhsen, one of our two executive editors, told a few staff members that he was going to be leaving.”

In other layoff/shutdown news:

I am told that Forbes (where I worked for many years), is in the final stages of planning cuts as it prepares to merge the editorial operations of its magazine and Web site units. Last month the company began integrating its business groups and laid off about three dozen people in the process.
GE’s (GE) NBC Universal has laid off at least 30 people in its sales group, reports AdAge. The cuts are part of a previously reported mandate from NBC CEO Jeff Zucker to cut three percent of the company’s budget. The Post says another 80 people could be fired at CNBC.
Barry Diller’s IAC (IACI) is breaking up its programming group, which includes ventures like College Humor, 236.com and Tina Brown’s DailyBeast.com. Some but not all of the sites will be closed down or sold off. PaidContent has details.
As always, I value reader input: You can reach me directly at peter@allthingsd.com.

VIACOM BLOODBATHhttp://www.nypost.com/seven/12052008/business/viacom_bloodbath_142754.htm

DAUMAN TRIPLES ESTIMATE, FIRES 850+ IN ALL DIVISIONS

By PETER LAURIA

The sheer size of the bloodletting that went down at Viacom yesterday has current and now-former employees referring to CEO Philippe Dauman alternately as "the undertaker" and "the mortician" around the company's water coolers.

Initially expected to total around 300 people, Dauman nearly tripled that number by announcing that Viacom would cut 850 jobs, or about 7 percent of its workforce. The company also said that it is suspending salary increases in 2009 for senior-level executives.

"The only time people hear from Philippe is when he's firing them," said one former executive, who asked to remain anonymous because he still maintains close ties to the company.

Sources expressed particular umbrage at the letter Dauman sent to staffers yesterday announcing the layoffs. In the letter, Dauman says he "couldn't be more proud or more appreciative" of Viacom's employees and that "saying goodbye to friends and colleagues is always difficult."

But coming in the context of massive layoffs, several staffers agreed with one source, who found the letter "totally offensive."

However, Dauman does have supporters in the company. One source, disputing the idea that Dauman is only heard from when it's bad news, said, "Dauman's always been available to speak at conferences or meet with clients whenever needed."

Viacom said the 850 job cuts will be carried out across the company's various divisions, but didn't provide a precise number for each unit. Sources said movie studio Paramount will lose about 100 employees and the MTV Networks group, which includes MTV, VH1, Nickelodeon and Comedy Central, would shed as many as 500 people.

At MTV Networks, sources said the advertising sales division would be hit particularly hard, which is ironic since advertising at Viacom's channels is trending below that of its peers.

Digital ad sales, which is supposed to be a growth area for Viacom, is expected to lose a few dozen people. And the former Viacom executive said the rumor going around is that digital media chief Mika Salmi might leave the company by the end of the year.

The layoffs, combined with the writedown of certain programming and other assets, will result in a pre-tax charge of $400 million to $450 million, or 42 cents to 48 cents per share, in the fourth quarter. But, the company expects to save between $200 million and $250 million next year as a result of the moves.

Viacom's layoffs are independent of the debt issues faced at Chairman Sumner Redstone's National Amusements. Redstone's next move may be to sell his stake in slot-machine company WMS Industries or part of the National Amusements movie theater chain.

Viacom shares closed trading yesterday up 13 cents to $14.63.