Zee Entertainment has announced plans to lay off approximately 15% of its workforce as part of a broader initiative led by MD and CEO Punit Goenka to establish a more streamlined management structure. This move is aimed at reducing costs and achieving targeted objectives, including 8-10% revenue growth and 18-20% Ebitda margins by FY26.
The layoffs are expected to impact around 500 employees out of a total permanent staff of 3,437. The decision follows closely on the heels of Goenka’s voluntary pay cut of 20%, signaling a commitment to cost-saving measures at all levels of the organization.
On Friday, Zee proposed a new operational model focused on efficiency and performance, with the aim of driving higher growth and profitability. Goenka outlined a three-pronged strategy in February, emphasizing cost reduction, eliminating business overlaps, and enhancing content quality, particularly in light of the termination of Sony’s proposed $10-billion merger with Zee in January.
Also read: Zee Tech Center in Bengaluru Faces 50% Workforce Reduction in Layoffs
“Building a simplified, lateral structure for the company will ensure that we maintain a sharper focus on performance, profitability, and productivity,” Goenka remarked on Friday.
In recent weeks, Zee has witnessed several senior-level exits, including Rahul Johri, president of business; Punit Misra, president of content and international markets; and Nitin Mittal, president and group chief technology officer. These departures are part of Zee’s broader efforts to streamline operations and cut costs.
Zee Entertainment’s MD and CEO, Punit Goenka, has put forth a proposal to elevate team members from various business units to higher roles and to personally oversee key areas. While the specifics of the new operational framework are pending approval from the board, Goenka outlined a broad blueprint on Friday.
The proposed structure will encompass Zee’s broadcast business, including its diverse portfolio of channels across genres, along with the digital, movie studio, and music divisions. The objective is to reinforce Zee’s market presence and strengthen its position.
Despite this strategic announcement, Zee’s shares closed slightly lower, down by 0.49% to `152.30 on the BSE. Investors await further details regarding the proposed restructuring and its potential impact on the company’s operations and performance.
Sources: indianexpress.com