Zee says layoffs are part of remodelling exercise after it lets go of hundreds of employees

Zee says layoffs are part of remodelling exercise after it lets go of hundreds of employees

In a clarification to the stock exchanges on December 3, Zee Entertainment said the recent layoffs at the company are part of its remodelling exercise.

The company, in a statement, said that as a part of its omni-channel approach, it has been re-modelling and integrating its business divisions to create a more agile and collaborative organisation structure.

"This exercise is a part of the consistent and strategic efforts being taken to ensure sharper focus on goals and performance. Furthermore, this optimisation is an ongoing exercise based on business dynamics and has no impact on the operation/performance of the Company," the statement read.

Zee's clarification comes after it was reported that the company has laid off 200 of its employees.

Last year, the company had shared about its plan to keep the organisation structure lean, cutting down workforce by 15 percent to about 700 employees, a move which came after its merger deal with Sony fell through.

"The Company had submitted the press release with the stock exchanges on April 5, 2024, captioned ‘ZEE’s MD & CEO proposes lean organization structure to the Board wherein we initiated the process of rationalization of workforce by 15 percent across the Company over a period," Zee's latest statement read.

Amid those who have been laid off in the latest round of downsizing, include a significant number of consultants rather than full-time staff.

In the second quarter of FY26, Zee Entertainment reported a 63 percent decline in consolidated net profit at Rs 76.5 crore due to pressure on advertising spending.

The company, which runs channels such as ZeeTV and ZeeCinema, had posted a consolidated net profit of Rs 209-crore in the corresponding quarter last fiscal.

Advertising revenue remained under pressure in the first half of FY26 at Rs 1564.8 crore, down 14 percent from Rs 1,813 crore in the same period last fiscal.

Domestic advertising revenue declined due to slowdown in FMCG spending. The company noted that the domestic advertising environment continues to be soft; pick-up on account of festive season augurs well for near-term.