Zee Entertainment is set to undergo a significant restructuring, with an anticipated 15% reduction in its workforce.
The decision, spearheaded by MD and CEO Punit Goenka, aims to streamline the company's management structure for enhanced efficiency. This move is part of a broader strategy to cut costs and meet ambitious revenue growth and Ebitda margin targets by the fiscal year 2026.
Approximately 500 employees, out of a total permanent staff of 3,437, are expected to be affected by the layoffs.
This announcement closely follows Goenka's recent decision to take a voluntary 20% pay cut, signaling proactive measures to align with the company's objectives.
Zee's proposed restructuring seeks to establish a leaner operational model, emphasizing performance and profitability.
Goenka, outlining the strategy, highlighted a focus on cost reduction, eliminating business redundancies, and elevating content quality. This approach was initiated after the termination of Sony's proposed $10-billion merger with Zee earlier this year.
Recent weeks have witnessed several senior-level departures from Zee, including Rahul Johri, Punit Misra, and Nitin Mittal, as part of the cost-cutting and operational streamlining efforts. Goenka aims to promote talent internally and take direct oversight of key areas to drive efficiency and productivity.
While specific details of the new operational framework are pending board approval, Goenka outlined a general blueprint. This includes consolidating the broadcast business, digital platforms, movie studio, and music vertical to bolster Zee's market position.
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