Zee Entertainment and Enterprises Limited on April 5 said that its Manging Director and Chief Executive Officer Punit Goenka has proposed the implementation of a lean and streamlined management structure to the board, "in line with his strategic plan focused towards achieving the targeted goals for the company."
The media company, in a regulatory filing, added that in line with Goenka's overall strategic approach, he has "initiated the process of rationalization of the workforce by 15 percent, that will prune the staff strength across the company to arrive at a streamlined team that is sharply focused on the set goals for the future."
The announcement comes just days after Zee had said that it is working towards streamlining the organisation, and is expected to help optimise resource allocation and enhance productivity. To that effect, Goenka on April 2 had announced that he is taking a 20 percent cut in his personal remuneration on grounds of focusing on the company's growth plans.
"The detailed composition of the new operating structure will be announced after seeking the required approvals and guidance from the Board," Zee said.
"The proposed structure is aimed towards arriving at a cost-effective operational model with speed and agility as the core areas of focus. It will further enable the company to chart higher growth by maintaining a keen eye on performance and profitability, thereby seamlessly executing its strategic priorities as required for a content creation company, the company added.
On organisational changes, Zee said that in the lateral structure, the MD & CEO has also proposed the elevation of certain team members across businesses, in order to provide them higher level of responsibilities; besides him assuming direct charge of the critical business verticals leading to cross-functional collaboration, quick decision making and higher productivity levels.
The core business units of the proposed structure will include broadcast, digital, movies and music.
Commenting on the organisational changes, Goenka said, "The streamlined team at ZEE will maintain a sharper focus on targeting higher levels of productivity to drive growth in order to generate value for all our stakeholders going forward. 1 look forward to the Board's guidance on this approach, enabling us to pursue our goals more effectively and take advantage of the opportunities before us."
Further, R. Gopalan, Chairman, stated, "The Board has noted the MD & CEO's steps being taken to streamline the organization and the proposed lean structure. 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."
Recently, Zee, which went through a termination process of the mega $10 billion merger with Sony Pictures Networks India after around two years of talks, had announced that its revenue vertical will directly report to Goenka.
The board of Zee had last month institutionalised a structured Monthly Management Mentorship (3M) Program.
The objective of the 3M Program is to guide and enable the management team to achieve key performance metrics, including the targeted 20% EBITDA margin, proposed by the MD & CEO, said Zee.
Meanwhile, shares of Zee on April 5 closed 0.49 percent lower at Rs 152.30 apiece on BSE.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
