ZEE Layoffs: Earlier stated aim of 15% workforce reduction results in more job cuts?
Days after Zee CEO Punit Goenka emphasized cost-cutting measures to improve margins and achieve long-term growth, employees were laid off this week as part of the phased reduction in workforce, as per sources.
Days after announcing its Q4 FY 2024 results, Zee Entertainment Enterprises Ltd (ZEEL) laid off dozens of employees this week, as per industry sources. Storyboard18 reached out to ZEEL with queries. The article will be updated after we receive official comments from the company.
This follows a previously announced phased restructuring plan, implemented in line with ZEE MD and CEO Punit Goenka's cost-cutting measures. The plan is to result in a 15 percent workforce reduction. Goenka proposed the implementation of a lean and streamlined management structure to the board on April 5.
Sources within the company said that the latest round of layoffs are part of the earlier stated aim of a 15 percent workforce reduction. The same is being done in a phased manner.
While announcing ZEEL results for the December quarter, Goenka had outlined his strategy to improve margins in the coming quarters. He had highlighted the three focus areas for the company. They were frugality, optimisation, and a sharp emphasis on high-quality content.
His stance hasn’t changed since. Even at the earning call for FY 24 Q4 results, Goenka emphasised 'frugality'. According to him, the need of the hour is to pivot to business to achieve a balanced cost structure in order to achieve sustained long term growth.
"With that backdrop we are looking at every element of the business with the lens of improving the overall performance. As a result we expect some short term aberration in digital business financial performance,” he had said in the call.
Read More: ZEE's Punit Goenka: We have to be frugal, make sure of buying right content at the right price
In the past few months, the company has also seen a host of resignations across board.
Some of these include Rahul Johri, President Business- South Asia, Nitin Mittal, President – Technology and Data, Punit Misra, President – Content and International Markets at ZEEL and others.
