As phase two of a round of cost-cutting layoffs , Viacom's MTV Networks plans to cut 250 positions from its international division.
MTV Networks International will restructure its corporate unit in London, merging many departments with those in its UK and US divisions. It will also deploy staffers in centralized international hubs to offices in local markets in Europe, the Middle East and Latin America.
Slated for completion by June, the cuts will reduce MTVNI's workforce by 7.7% - from 3,257 to 3,007, including minor reductions in Asia earlier this year.
They are designed to increase operating margins by having International focus on its biggest outlet - the UK - and consolidate its resources behind the highest growth departments - program sales, consumer products, and digital media and ad sales, handled by the "Viacom Brand Solutions" group.
While those four divisions will not be affected by cuts, less profitable divisions, including communications, research, strategic services, HR, finance, and talent, music and creative content will be merged with their parallel departments in the UK and the U.S.
The reductions abroad have been expected since the company began paring down its U.S. staff last month. On Feb. 12, MTV Networks began cutting 250 U.S. staffers across its stable of cable brands in an effort to reduce costs and free up resources for new digital ventures, the company said.
Also as part of the International restructuring, employees from centralized hubs abroad will be redeployed into offices in the markets they cover. Staffers from the company's Europe/Middle East "emerging markets" group who are currently based in London will move to Budapest, Hungary, and Warsaw, Poland. Employees from MTVNI's Latin America group will move from Miami to Buenos Aires.
“These changes will position us well for the next phase of our growth -- increasing our operating margins through more-efficient corporate structures, while also mobilizing our resources to build our multiplatform brand portfolios in priority markets and expand growing revenue areas such as ad sales, digital media and consumer products,” said MTVNI President Bob Bakish in a statement.
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