As NewsX grapples with downsizing and salary cuts, the media entity has started taking various measures to streamline and strengthen its operations. NewsX has been undergoing quite a few changes in the last couple of months. The exits were expected since the media group changed hands in January 2009 when Vinay Chhajlani, CEO of NaiDunia and Founder of Webdunia, and Jehangir Pocha, former editor of Businessworld, had bought over 100 per cent stake in INX Media from Peter and Indrani Mukerjea.
Explaining the reason for such a huge number of lay-offs, an official spokesperson from NewsX said, “When NewsX was purchased by Indi Media in January this year, it was carrying the infrastructure and resources that were originally created to enable the launch of multiple channels. Since the acquisition, the new management has decided to focus on NewsX and streamline and strengthen its operations. All previous plans to launch multiple channels have been put on hold. This has made it imperative for NewsX to prune and rightsize its operations, both in terms of infrastructure and people. However, NewsX will continue to hire talent in specific positions and strengthen its operations, distribution and branding.”
With several changes at the top management in the recent past, NewsX has had its share of crisis and misfortunes. Less than four months ago, NewsX had effected salary cuts in the upper and middle management across the organisation.
There have been talks in the past about re-branding or changing the name of the channel. Efforts are being made to give a new feel to the brand and T.A.G. had been roped in as the creative agency.
In March 2009, INX investors had roped in industry veteran Pradeep Guha to consult on the way forward for the organisation.
It may be noted that in April this year, Arup Ghosh, Head of News Room, NewsX, had also quit. Vynsley Fernandes was deputed from INX Media to NewsX for the ‘settling in’ period of the new management at NewsX. On completion of the same, Fernandes returned to INX Media in April 2009, where he continues to hold the portfolio of Group Director, Network Operations.
Since it is a sensitive issue, exchange4media has refrained from mentioning the names of the people who are on the exit list.
NewsX downsizes its staff, several senior editors get pink slips