MTV Continues Shift Towards Digital, 250 Dismissed

The ongoing digital disruption has a dark side, one that is dampening moods at MTV Networks this week. As expected, the Viacom-owned group will lay off 250 staffers, part of a larger shift towards digital opportunities. MTV Networks chairman and chief executive Judy McGrath issued the somber news, and outlined changes across a number of areas. That includes both domestic, US-based departments and overseas divisions. The changes started several months ago with the departure of Viacom chief executive Tom Freston, a near-legend at MTV who was pushed by chairman Sumner Redstone. That was followed by the departure of chief financial officer Michael Dolan, and a number of other high-level MTV Networks executives.

In an email to employees issued Monday morning, McGrath pointed to a shift of resources towards "interactive properties and some of our new networks," and a reduction in others. That is part of a broader restructuring happening across traditional media companies, especially as digital upstarts-turned-giants like YouTube, MySpace, and Facebook gain ground. Meanwhile, the mood remains equally grim at EMI, a company that is now in the throes of a difficult staff reduction. The latest casualties are reportedly coming from the Capitol Records sales department, and other departments have also experienced heavy cuts. Like MTV, the reductions at EMI started with high-level executives, and eventually trickled to the larger staff.

Story by news analyst Alexandra Osorio.