Following the dissolution of its potential merger with Sony, Zee Entertainment has initiated cost-cutting measures, including laying off 50% of its tech team at the Technological and Innovation Centre (TIC) in Bengaluru. In a press release, the company said, “Basis the guidance received from the board during the recently conducted 3M Program, the MD & CEO (Punit Goenka) has pruned the TIC’s structure by approximately 50% and streamlined its scope of work.”
The company has not disclosed the exact number of employees affected by the layoffs.
Earlier this week, ZEE Entertainment Enterprises Ltd (ZEEL) introduced the 3M Program to help achieve key performance metrics, including a targeted 20% EBITDA margin. To oversee the program's implementation, a Special Committee was formed by ZEEL's Board, consisting of ZEE Chairman R Gopalan and Uttam Prakash Agarwal, Chairman of the Audit Committee.
ZEEL reported that the committee conducted a thorough analysis of TIC, which incurred approximately Rs 600 crore in expenditure the previous year. As a result, the committee recommended a 50% reduction in TIC expenditure for the Financial Year 2024-25, with a focus on utilising its services to enhance the company’s content development, distribution, and monetisation strategies.