Zee Announces Major Layoffs and Workforce Rationalization
Zee Entertainment Enterprises Limited (ZEEL) has initiated a fresh round of job cuts, affecting approximately 200 employees and consultants, as part of an aggressive, ongoing restructuring drive.
The decision is a continuation of the company’s cost rationalization strategy, which was accelerated following the high-profile collapse of its $10 billion merger agreement with Sony’s Indian subsidiary, Culver Max Entertainment, in early 2024.
The Context: Fallout from the Failed Merger
The termination of the merger deal in January 2024 left ZEEL facing significant financial pressure and the necessity to quickly pivot its strategic focus.
The company had spent approximately ₹432 crore on merger-related costs, and the challenging media landscape—where rivals, notably the Reliance-Disney merged entity, are consolidating—exposed it to further challenges.
In response, ZEEL previously announced a broader plan to trim its overall workforce by about 15%, equating to roughly 700 permanent staff out of 3,400.
This latest round of approximately 200 exits focuses largely on consultants. These departures address operational redundancies created by the shift in strategy.
Zee Streamlining Operations and Technology
The restructuring aims to create a “lean and streamlined management structure” to enhance efficiency and agility.
The restructuring has caused the technology and innovation vertical to feel the most significant impact.
The company’s Technology and Innovation Centre (TIC) in Bengaluru once housed over 650 engineers.
As ZEEL moved to streamline its digital initiatives, the company drastically slashed its team.
CEO Punit Goenka has taken direct charge of several critical business divisions, enforcing a new, integrated “omni-channel approach.”
The company spokesperson confirmed that the exercise is part of consistent efforts to achieve a sharper focus on goals and performance metrics.
Financial Performance and Future Strategy
The layoffs come amidst a challenging financial period for the broadcaster.
ZEE reported a sharp 63% year-on-year decline in consolidated net profit to ₹77 crore for the quarter ended September 2025.
This downturn was attributed to a weak advertising market, with ad revenue falling 11%. This occurred despite a modest 5% growth in subscription income.
To counter these pressures, ZEEL’s management is prioritizing three key tenets: Frugality, Optimization, and a Sharp Focus on Quality Content.
The company remains committed to achieving an aggressive 20% EBITDA margin target by FY26.
Reaching this goal requires stringent cost control and enhanced productivity across all verticals.
Punit himself previously implemented a voluntary 20% reduction in his personal remuneration to lead the cost-cutting initiative from the front.
The reduction in headcount is seen as a necessary step. This move aligns the company’s cost structure with its post-merger independent growth strategy.
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