JioStar, the newly formed joint venture between Reliance Industries’ Viacom18 and Disney’s Star India, has announced plans to cut 600 jobs as part of its post-merger workforce restructuring.
This move comes in the wake of the merger, which created India’s largest media and entertainment company, valued at ₹70,352 crore.
The layoffs aim to streamline operations, eliminate redundancies, and optimize resources across the organization.
The merger between Viacom18 and Disney’s Star India was finalized in late 2024, combining two of the most prominent players in India’s media landscape.
The new entity, JioStar, boasts a diverse portfolio that includes popular TV channels like Colors, Star Plus, and Star Sports, as well as the JioHotstar streaming platform.
The merger was driven by a strategic vision to compete with global streaming giants like Netflix and Amazon Prime Video while strengthening traditional television operations.
The layoffs have significantly affected regional entertainment channels like Colors Kannada and Colors Bangla, where redundancies were identified.
The sports division, which includes major events like the IPL and the Women’s Premier League (WPL), has not been affected.
It has remained untouched during the restructuring process.
JioStar plans to expand its sports portfolio by launching new channels, reflecting its focus on high-growth sectors.
Reasons Behind the Layoffs at JioStar
The decision to cut 600 jobs is part of a broader strategy to address overlapping roles and streamline the workforce.
According to industry insiders, redundancies were identified in corporate departments such as sales, marketing, programming, distribution, finance, and legal teams.
The layoffs are expected to impact employees at all levels, from entry-level staff to senior managers.
Uday Shankar, Vice-Chairperson of JioStar, emphasized the importance of handling the headcount rationalization process thoughtfully and transparently.
He stated, “Wherever there’s more than one person for the same role, we will first look to find them another meaningful position within the organization. However, in some cases, there may be redundancies.”
Severance Packages and Support for Affected Employees
JioStar has announced a comprehensive severance package for affected employees to ease the transition.
Employees with less than three years of experience will receive six months’ salary plus a three-month notice period.
Employees with longer tenures will receive one month’s salary for each year of service.
This amount will be capped at a maximum of 12 months’ salary, in addition to the notice period.
The company has committed to providing gratuity on a pro-rated basis. This benefit will be extended even to employees who have not completed the mandatory five-year tenure.
Additionally, JioStar is exploring opportunities to redeploy affected employees within the broader Reliance Group, particularly in tech and digital services.
This initiative aims to minimize the impact of the layoffs and provide alternative career paths for displaced workers.
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