NEW DELHI: ZEE Entertainment Enterprises Ltd (ZEE) has cut down its workforce by 50% in its Technology & Innovation Centre (TIC), Bengaluru. Actioned by MD & CEO of ZEEL Punit Goenka, the steps are in line with his approach to optimise the resources and arrive at a cost-effective structure to drive continued growth, the media & entertainment company said in a statement.
“Basis the guidance received from the Board during the recently conducted Monthly Management Mentorship (3M) Program, the MD & CEO has pruned the TIC’s structure by nearly 50% and streamlined its scope of work,” ZEEL said in its statement.
Earlier this week, ZEEL announced the 3M Program to enable the management team to achieve key performance metrics, including the targeted 20% EBITDA margin, as proposed by Goenka. In order to drive the 3M Program, ZEEL’s Board has formed a Special Committee to review the management’s business performance and provide the required directional guidance.
The Special Committee comprises of ZEE Chairman R Gopalan and Uttam Prakash Agarwal, Chairman of the Audit Committee.
This action by Zee came after Sony Pictures Networks India (SPNI) (now known as Culver Max Entertainment) earlier this year decided to terminate its merger with ZEEL, more than two years after it was first announced. Sony’s decision to scrap the merger is being seen as a big setback for Zee which is struggling to grow its revenue and maintain profit level.
Zee said that the 3M Program Special Committee has invested its time in conducting a detailed analysis of the Technology and Innovation Centre (TIC), which had incurred an expenditure of approximately Rs 600 crore in the last year. The Committee noted that the TIC has developed a substantial level of technology and tools; however, it has highlighted the immediate need to focus on Return on Investment.