Zee announces more layoffs as business takes a hit after failed Sony merger

Core Viewpoint - Zee Entertainment is undergoing a restructuring process that includes a significant reduction in workforce, primarily affecting consultants, as part of a rationalization program initiated after the failed merger with Sony Pictures Networks India [1][9]. Company Actions - The latest round of downsizing is part of a broader strategy to streamline operations and align with updated business priorities, with around 200 employees affected [1][9]. - The company is implementing an omni-channel approach by re-modelling and integrating its business divisions to create a more agile and collaborative organizational structure [2][9]. - Company officials indicated that the recent layoffs are connected to a previously announced plan to reduce headcount by approximately 15% following the merger collapse [2][5]. Financial Performance - Zee Entertainment reported a 63% year-on-year decline in consolidated net profit to ₹77 crore for the quarter ended September 2025, attributed to higher expenses and lower revenue impacting margins [6][9]. - Operating revenue decreased by 2% year-on-year to ₹1,969 crore, reflecting challenges in the advertising market [7][9]. - Advertising revenue fell by 11% to ₹806 crore due to ongoing softness in FMCG spending, while subscription revenue increased by 5% to ₹1,023 crore, supported by growth in both linear and digital segments [7][9]. Industry Context - The restructuring occurs amid a broader trend in the broadcasting sector, where companies are facing declining advertising and subscription revenues due to subscriber churn and an advertising slowdown [5][9]. - The industry is witnessing cost-cutting measures as companies strive to protect profitability in a challenging market environment [5][9].