ZEE Entertainment Enterprises managing director and CEO Punit Goenka has proposed to lay off 15% of the workforce as the cash-strapped media company looks to cut employee costs.
"In line with his overall strategic approach, the MD & CEO has initiated the process of rationalisation of the workforce by 15%, 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," Zee says in a regulatory filing.
The proposed structure is aimed towards arriving at a cost-effective operational model with speed and agility as the core areas of focus, the company says.
"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," it adds.
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 detailed composition of the new operating structure will be announced after seeking the required approvals and guidance from the board, the company says.
"Building a simplified, lateral structure for the Company, will ensure that we maintain a sharp focus on Performance and Profitability as the key growth drivers, and the structure proposed to the Board is in line with this core thought," says Punit Goenka, MD & CEO, Zee.
"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. I 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," Goenka adds.
In order to further strengthen the content creation capabilities, the lateral structure will focus on a more collaborative environment across the core business segments to leverage synergies in terms of creativity, technology and revenue generating opportunities, the company says.
"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. The Board appreciates the steps taken by the management to enhance the overall performance of the Company, reaffirming our faith in the team’s ability to drive the Company towards its set targets for the future," says R. Gopalan, chairman, Zee.
This comes days after Goenka took a voluntary 20% salary cut.
Also Read: Have institutions failed Zee investors?