Zee Entertainment Enterprises Ltd (ZEEL) has initiated another round of job cuts, impacting approximately 200 employees and consultants, as part of an ongoing restructuring exercise. The company maintains that these reductions are part of a larger remodeling exercise to create a more agile and collaborative organization.
This move follows the collapse of Zee's proposed merger with Sony Pictures Networks India in early 2024. The termination of the merger agreement has prompted Zee to focus on cost rationalization and streamlining operations. The company had spent approximately ₹432 crore on merger-related costs.
A company spokesperson stated that the restructuring involves "re-modelling and integrating its business divisions to create a more agile and collaborative organisation structure". The spokesperson added that this exercise is a strategic effort to ensure a sharper focus on goals and performance. Sources within the company indicate that the latest job cuts are linked to the previously announced plan to reduce headcount by about 15%, which translates to roughly 700 employees out of a total workforce of 3,400.
The Technology and Innovation Centre (TIC) in Bengaluru has been significantly impacted by the restructuring. Once home to over 650 engineers, the team has been drastically reduced as Zee streamlines its digital initiatives. CEO Punit Goenka has taken direct charge of key business divisions, implementing an integrated "omni-channel approach".
The media landscape is currently facing challenges with falling advertising and subscription revenues. Broadcasters across the sector are implementing cost-cutting measures to protect profitability amid subscriber churn and a slowdown in advertising. Zee reported a 63% year-on-year decline in consolidated net profit, falling to ₹77 crore for the quarter ended September 2025. This downturn is attributed to a weak advertising market, with ad revenue slipping 11%. Despite these challenges, subscription revenue grew by 5%, driven by gains in both traditional TV and digital segments.
Zee's management is prioritizing frugality, optimization, and a focus on quality content to counter these financial pressures. The company aims to achieve an EBITDA of 20% by FY26.
These departures are part of Zee's earlier commitment to trim its workforce by about 15% following the failed Sony deal. The latest reductions are seen as an extension of the cost and workflow overhaul launched in April 2024. The restructuring aims to create a "lean and streamlined management structure" to enhance efficiency and agility.
