Here Come the Layoffs

A barrage of news this morning,

Viacom Inc. (NYSE:VIA),said it would book a charge of $400 million to $450 million, or 42-48 cents a share, in its fourth quarter as it lays off about 850 employees or 7% of its work force. The New York-based media company said it's suspending senior management salary increases in 2009. The staffing and compensation actions and write-downs are expected to result in pre-tax savings of $200 million to $250 million in 2009. "We are moving rapidly to adapt to the challenges presented by the current economic environment," the company said.

AT&T (NYSE:T) says it is cutting 12,000 jobs, or about 4 percent of its work force, because of the economic downturn. The Dallas-based telecommunications company said Thursday the job cuts will take place in December and throughout 2009. The company also cited a changing business mix and a more streamlined structure as other reasons for the layoffs. AT&T plans to take a charge of about $600 million in the fourth quarter to pay for severance costs.

Chemical maker DuPont (NYSE:DD) said on Thursday it expected to post a fourth-quarter loss and would cut 2,500 jobs as a steep drop in construction, car sales and consumer spending hit its business. The company, whose shares fell 8.3 percent in premarket trade, said it was now targeting cost cuts for 2009 of $600 million, up from its previous goal of productivity improvements of $200 million.

That improvement is on top of $130 million in cost reductions expected from its restructuring plan that will result in a charge of $500 million in the fourth quarter. DuPont said it now expects a fourth-quarter loss of 20 to 30 cents per share excluding one-time items, a sharp turnabout from the earnings of 20 to 25 cents it had expected.