The economy continues to take its toll on the world of daytime drama.

The latest tragic example involves Eric Braeden, as TV Guide Canada reports his character of Victor Newman has been written out of The Young and the Restless. The actor has already taped his final scenes.

With budgets cuts affecting even the biggest names, Braeden had been locked in intense negotiations. He's signed through 2010, but that contract is apparently void now.

“Everyone knows they have to take a slash in pay,” an insider said. “That isn’t the issue — the issue is that their current contract isn’t being respected. Once you open up a contract during a cycle, the original contract is null and void and you must start over from scratch. Eric thinks he should be paid his current salary until next year."

We'll keep fans apprised of this situation as news develops.

Matt Richenthal is the Editor in Chief of TV Fanatic. Follow him on Twitter and on Google+.