ZEE CEO Punit Goenka to cut workforce by 15% to reduce costs

ZEE Entertainment Enterprises Ltd said that CEO Punit Goenka has initiated a process of trimming the workforce by 15% across the company. 

The decision is part of a broader strategy to streamline operations and focus more keenly on core business segments, including digital, movies, and music. Goenka emphasizes the move towards a leaner, more efficient organizational structure designed to enhance productivity and ensure sustained profitability.

The need for layoffs

According to the company, the layoffs, which will reportedly affect approximately 500 of its 3,437 permanent staff, are aimed at creating a more agile and performance-focused team.

The move comes in the wake of recent high-profile departures from the company and is aligned with Goenka's vision for a simplified, lateral organizational structure. The restructuring is expected to foster better collaboration, quicker decision-making, and improved performance across all levels of the company.

R. Gopalan, Chairman, ZEE, said, “The Board has noted the MD & CEO’s steps being taken to streamline the organization and the proposed lean structure. While the Board is in the process of discussing the same, the proposed structure certainly is in line with the strategic guidance provided to the management. The Board appreciates the steps taken by the management to enhance the overall performance of the Company, reaffirming our faith in the team’s ability to drive the Company towards its set targets for the future.”

Operational efficiency at the core

ZEE's move towards operational efficiency involves not just workforce reduction but also a sharp focus on cost management, quality content production, and elimination of business overlaps.

The company is striving for significant growth targets, including 8-10% revenue growth and 18-20% EBITDA margins by FY26.

What CEO Punit Goenka said about restructuring?

Punit Goenka, MD & CEO, ZEE added, “Building a simplified, lateral structure for the Company, will ensure that we maintain a sharp focus on Performance and Profitability as the key growth drivers, and the structure proposed to the Board is in line with this core thought. The streamlined team at ZEE will maintain a sharper focus on targeting higher levels of productivity to drive growth in order to generate value for all our stakeholders going forward."

"I look forward to the Board’s guidance on this approach, enabling us to pursue our goals more effectively and take advantage of the opportunities before us.” Going forward, the Company will continue to follow the three-pronged approach articulated by the MD & CEO, focusing on Frugality, Optimization and a Sharp Focus on Quality Content," Goenka added.