ZEEL Initiates Workforce Optimization, To Layoff 15% Of Its Staff; Check Deets

ZEE Entertainment Enterprises Ltd (ZEEL) has embarked on a process of workforce optimization, aiming to reduce staff numbers by 15 percent across the company. The move, outlined in a regulatory filing, comes as part of MD & CEO Punit Goenka’s proposal for a more streamlined organizational structure, emphasizing a lateral approach and identifying broadcast, digital, movies, and music as core business units.

“In alignment with our strategic vision, the MD & CEO has initiated a 15 per cent reduction in our workforce, aimed at creating a more focused and agile team primed for future objectives,” stated the company. ZEEL’s annual report for 2022-23 lists 3,437 permanent employees.

The proposed restructuring is geared towards achieving a cost-effective operational model with a focus on speed and agility. “This restructuring will position us for accelerated growth by prioritizing performance and profitability, essential for a content creation company,” the filing explained.

Moreover, the new team structure aims to foster a collaborative, performance-driven culture. “Under the lateral structure, the MD & CEO has proposed the elevation of certain team members across various businesses to shoulder greater responsibilities. Additionally, he will directly oversee critical business verticals to facilitate cross-functional collaboration, swift decision-making, and increased productivity,” ZEEL added.

While the detailed composition of the new structure awaits approval from the board, Goenka emphasized the importance of maintaining focus on performance and profitability. “A simplified, lateral structure will sharpen our focus on driving productivity and growth, creating value for all stakeholders,” he stated.

ZEEL Chairman R Gopalan expressed support for Goenka’s efforts to streamline the organization. “The proposed lean structure aligns with our strategic direction, and we commend the management for their initiatives to enhance overall performance,” he remarked.

The core business units under the proposed structure include broadcast, digital, movies, and music. ZEEL highlighted the significance of linear business as a growth driver, complemented by a robust digital business combining content and technology. Additionally, the movies business aims to establish itself as a leading pan-India film studio, while the music business seeks to strengthen market presence and enhance profitability.

In line with the company’s frugal approach, Goenka announced a 20 percent reduction in his remuneration. According to the 2022-23 annual report, his total remuneration was Rs 35.07 crore.

Recently, ZEEL announced a 50 percent reduction in staff at its Technology and Innovation Centre (TIC) following a critical assessment by a special committee. Although exact figures weren’t disclosed, the annual report noted that the center boasted over 650 engineers, providing a competitive advantage in the digital landscape.

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