Zee Entertainment clarifies on layoffs, says cuts part of earlier workforce rationalisation plan

Zee Entertainment Enterprises Ltd has clarified that the layoffs reported this week are not part of a fresh 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 to the stock exchanges, the broadcaster said the rationalisation is aligned with its ongoing efforts to build a more agile, collaborative and cost-efficient organisation.

“As part of its omni-channel approach, the company has been re-modelling and integrating its business divisions to create a more agile and collaborative organisation structure. This optimisation 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 came after reports claimed that around 200 employees were laid off over the past week. Zee said these exits fall within the previously announced restructuring blueprint, which aims to reduce total headcount to about 700 employees. A sizeable share of the latest exits, the company added, involved consultants rather than full-time employees.

The rationalisation plan was first unveiled by former MD & CEO Punit Goenka on April 5, 2024, shortly after the collapse of the company’s much-anticipated merger with Sony. Goenka had told the board that Zee needed a “lean organisation structure” and a “streamlined team sharply focused on future goals.” The decision was positioned as a crucial step toward achieving a cost-effective operational model, with speed and agility as core priorities.

Zee reiterated that the press release detailing this strategy had already been submitted to stock exchanges in April 2024 under the title “ZEE’s MD & CEO proposes lean organization structure to the Board,” emphasising that the ongoing layoffs are part of this multi-phase programme and not a new development.

Financial pressures persist

The workforce optimisation comes at a time when Zee continues to grapple with pressure on advertising revenues. In the second quarter of FY26, the company reported a 63% decline in consolidated net profit, which fell to ₹76.5 crore from ₹209 crore in the same quarter last year. Zee attributed the weak performance primarily to muted advertising demand.

Advertising revenue in the first half of FY26 dropped 14% year-on-year to ₹1,564.8 crore, dragged down by softness in domestic ad spending. The company said the slowdown was driven by reduced FMCG advertising, a sector that traditionally contributes significantly to TV ad budgets. While the festive season has led to some improvement, Zee cautioned that the broader domestic advertising environment remains subdued.

As Zee continues integrating business units and rationalising roles, the company maintains that the restructuring will strengthen long-term efficiencies without disrupting operational performance.