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The owner of movie studio Paramount Pictures and
cable networks such as MTV and Comedy Central said it will take
a related pre-tax charge of about $785 million in the quarter
ended March 31.
Viacom also halted its $20 billion share buyback program due to
the restructuring and the spending on acquisitions anticipated
in the current fiscal year.
The company's shares fell 1.6 percent after the bell on Monday.
Viacom said the new structure would realign sales, marketing,
creative and support functions and increase efficiencies in
program and product development.
The company in January reported lower-than-expected
first-quarter revenue due to weak advertising spending in the
United States.
Analysts on average were expecting the company to post a profit
of $428.3 million on revenue of $3.26 billion in the second
quarter, according to Thomson Reuters I/B/E/S.
Viacom said on Monday it "reallocating resources to expand its
capabilities in critical business areas" such as data analysis,
technology development and consumer insights.
The company said it expects to save about $350 million annually,
including about $175 million this year, from the restructuring.
Viacom said the stock buyback halt, aimed to keep the company
within its target leverage ratio, would last no later than
October.
Up to Monday's close, shares of the company have slipped about 9
percent this year.
(Reporting By Lehar Maan in Bengaluru; Editing by Savio D'Souza)
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