 "ZEE Entertainment's Punit Goenka to lay off 15% of workforce to cut costs")
Indian broadcaster ZEE Entertainment Enterprises (Zee) has proposed a new, streamlined management structure to the board to rationalise its workforce by 15 per cent, the company said in a statement.
“The proposed structure is aimed (at) arriving at a cost-effective operational model with speed and agility as the core areas of focus,” the company said. The firm did not give the number of layoffs.
In the new lateral structure, Punit Goenka, managing director and chief executive officer, proposed the elevation of certain team members across businesses, in order to provide them with a higher level of responsibilities. Besides, Goenka will assume direct charge of the critical business verticals leading to cross functional collaboration, quick decision making, and higher productivity levels.
The detailed composition of the new operating structure will be announced after seeking the required approvals and guidance from the board, the Zee said. The core units of the new structure will include broadcast, digital, movies, and music. Zee shares closed at Rs 152 on Friday with a valuation of Rs 14,628 crore. They are under pressure since Japan’s Sony Corporation withdrew from a merger agreement between its India unit and Zee in January this year. Zee shares are down 44.55 per cent since January 1 this year.
“Building a simplified, lateral structure for the firm will ensure 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,” Goenka said.
R Gopalan, chairman of the Zee board, said the board had noted the steps being taken to streamline the organisation and the proposed lean structure.
More From This Section
“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,” Gopalan said.
Frugality, optimisation, and a sharp focus on quality content are the three key tenets of the plan implemented by the management, and the proposed organisation design will be in line with this approach, the statement said.