New York - Media conglomerate Viacom (NYSE: VIA), which owns Paramount Pictures and a range of cable channels under MTV Networks, announced on Thursday that it will cut 850 jobs across all sections of the company, or about 7% of its total workforce, citing evolving economic conditions. "We are moving rapidly to adapt to the challenges presented by the current economic environment," said Viacom president and CEO Philippe Dauman.

"The steps we have taken over the last two years, including those we are announcing today, have put us on very sound financial footing with a strong balance sheet and substantial cash flow. This affords us the flexibility to successfully deal with challenges while also capitalizing on the opportunities that inevitably arise in uncertain times."

The company said it will take a restructuring charge of $400-$450 million in the fourth quarter.

In addition to the layoffs, Viacom has suspended senior-level management salary increases for 2009, and will write down certain programming and other assets.

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http://snipurl.com/76cyq (AP)