Mumbai: Zee Entertainment will lay off an estimated 15% of its workforce as MD and CEO Punit Goenka proposes a leaner and more streamlined management structure. The company aims to reduce costs and achieve the targeted objectives of 8-10% revenue growth and 18-20% Ebitda margins by FY26.
The layoffs are expected to affect approximately 500 employees, of the total 3,437 permanent staff. The announcement comes within days of Goenka’s decision to take a voluntary pay cut of 20%.
On Friday, Zee proposed a new structure, seeking to establish a cost-efficient operational model. This model is designed to spur higher growth by focusing on performance and profitability, Zee said.
Goenka had laid out a three-pronged strategy — cutting costs, reducing business overlaps and enhancing content quality — in February soon after Sony had called off its proposed $10-billion merger with Zee in January. “Building a simplified, lateral structure for the company, will ensure that we maintain a sharper focus on performance, profitability and productivity,” Goenka said.
In the last one month, Zee has seen 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, as part of its efforts to cut costs and streamline operations.
Goenka has proposed promoting team members across different business units to higher responsibilities. He also plans to take direct oversight of key areas.
While Zee will disclose the specifics of the new operational framework after obtaining the necessary approvals from the board, Goenka did put a broad blueprint in place on Friday.
He said that the new structure would include the broadcast business, including Zee’s portfolio of channels across genres, apart from digital, the movie studio and the music vertical whose focus will be to fortify its stronghold in the marketplace.
Agencies

Agencies