Zee fires nearly 50% staff at its Bengaluru innovation center
What's the story
Zee Entertainment has announced a significant reduction in its workforce at its Bengaluru-based technology and innovation center.
The company has downsized by approximately 50%, a decision prompted by suggestions from an internal review panel to curb expenses.
The implementation of this decision was overseen by Punit Goenka, the managing director and chief executive officer, as stated in a company press release.
Recommendations
Internal review panel suggests cost-cutting measures
The '3M (Monthly Management Mentorship) Program Special committee,' comprising company chairman R. Gopalan and audit committee chairman Prakash Agarwal, had previously advised Zee to minimize losses across its ventures.
The review panel also suggested that Zee cut back on expenses in other areas to achieve a crucial profit goal, as disclosed by the company.
The committee further suggested that spending at Zee's technology and innovation hub should be halved in fiscal 2025.
Challenges
Zee Entertainment faces legal and competitive challenges
Zee is currently grappling with legal issues stemming from unsuccessful negotiations with Sony and a failed cricket streaming deal with Walt Disney.
The company is also contending with heightened competition due to the consolidation of Disney and Reliance's Indian media properties.
This consolidation has given rise to an $8.5 billion media behemoth, further intensifying the competitive landscape for Zee Entertainment.