Z takes omni-channel route, lays off staff to integrate business

ZEEL has initiated another round of job cuts as part of an ongoing restructuring drive that started last year, according to people familiar with the development.

The latest reductions have been seen as an extension of the cost and workflow overhaul launched in April 2024, after the company’s proposed merger with Sony Pictures Networks India collapsed. 

Roughly 200 individuals are believed to be impacted, a sizeable share of whom are consultants rather than permanent employees.

According to sources, the company has been reorganising and merging business units to build a leaner, faster and more integrated operation under its omni-channel strategy. 

The restructuring is aimed at sharpening focus, improving coordination and ensuring performance discipline across teams, they said. 

These departures are part of Zee’s earlier commitment to trim its workforce by about 15% following the failed Sony deal, said sources close to the developments.

Zee had previously said it planned to reduce its employee base by roughly 700 people, about 15% of its staff, after the merger collapsed. 

According to a company spokesperson, “As part of its omni-channel approach, the company has been re-modelling and integrating its business divisions to create a more agile and collaborative organization structure. The exercise is a part of the consistent and strategic efforts being taken to ensure a sharper focus on goals and performance.” 

Zee reported a sharp 63% drop in consolidated net profit to ₹77 crore in Q2 FY26, hurt by rising costs and weaker revenues. Operating revenue slipped 2% to ₹1,969 crore, dragged down by a subdued advertising market. Ad revenue fell 11% to ₹806 crore due to muted FMCG spending, while subscription revenue grew 5% to ₹1,023 crore, driven by gains in both traditional TV and digital segments.

Earlier, CEO Punit Goenka had noted that the bulk of the workforce rationalisation was already completed, adding that the company would continue to keep its cost structure aligned with its evolving business priorities.