PREVIOUS: Philippe Dauman and Tom Dooley Announce 7% Reduction At Viacom

To: All Employees
Date: December 4, 2008
From: Brad Grey

Dear Colleagues:

By now, you all have seen the email from Philippe Dauman and Tom Dooley regarding Viacom’s cost-saving initiatives, which are designed to better position the Company in this difficult economic climate. Like all other divisions of the Company, Paramount too is adapting to the changing conditions and, as a result, we will reduce our global workforce.

These reductions are across the studio: accounting, business/legal affairs, corporate and government affairs, home entertainment, human resources, information technology, production, studio lot operations and Vantage. The vast majority of affected employees will be notified today in the United States and in the coming days internationally. We wish them the best, and thank them for their many contributions to Paramount.

Without question, the changes we implement today required us to make difficult choices. We take these steps after a careful analysis of our overall business and as part of a broader strategy to overcome the challenges of this unusual time in the market and to chart a successful course for the future.

As we look ahead, we are encouraged by the strength of our slate, the quality of our creative partners, the innovation we see on the lot every day and the projects we have in development. These assets, coupled with your talent and hard work, I believe will enable us to remain strong over the long term.