Zee Entertainment clarifies layoffs, says it is scrapping part of previous workforce rationalization plan
Zee Entertainment Enterprises Ltd clarified that the layoffs announced this week are not part of a new downsizing exercise but stem from an earlier decision to reduce its workforce by 15%, a plan the company first announced in April 2024. In a filing with the stock exchanges, the broadcaster said the streamlining was aligned with its ongoing efforts to build a more agile, collaborative and profitable organization.
“As part of its omnichannel approach, the company has reshaped and integrated its business divisions to create a more agile and collaborative organizational structure. This optimization is an ongoing exercise based on business dynamics and has no impact on the operation or performance of the company,” Zee said in its latest statement.
The clarification comes after reports claimed that around 200 employees had been laid off over the past week. Zee said the departures were part of the previously announced restructuring plan, which aims to reduce the total workforce to around 700 employees. A significant portion of the latest departures, the company added, were of consultants rather than full-time employees.
The rationalization plan was first revealed by former MD and CEO Punit Goenka on April 5, 2024, soon after the company’s much-anticipated merger with Sony fell through. Goenka had told the board that Zee needed a “lean organizational structure” and a “streamlined team with a strong focus on future goals”. The move was positioned as a crucial step towards achieving a profitable operating model, with speed and agility as core priorities.
Zee reiterated that the press release detailing this strategy had already been submitted to the stock exchanges in April 2024 under the title “ZEE CEO proposes simplified organizational structure to the board”, emphasizing that the ongoing layoffs are part of this multi-phase program and not a new development.
Financial pressures persist
The headcount optimization comes at a time when Zee continues to face pressure on advertising revenue. In Q2FY26, the company reported a 63 per cent decline in its consolidated net profit, which fell to ₹76.5 crore from ₹209 crore in the same quarter last year. Zee attributed the weak performance mainly to low advertising demand.
Advertising revenue in the first half of FY26 fell 14% year-on-year to ₹1,564.8 crore, held back by weak domestic ad spend. The company said the slowdown was due to reductions in FMCG advertising, a sector which traditionally contributes significantly to TV advertising budgets. Although the festive period has led to some improvement, Zee warned that the overall domestic advertising environment remains sluggish.
As Zee continues to integrate business units and streamline roles, the company maintains that the restructuring will drive long-term efficiencies without disrupting operational performance.
