ZEE hinted during an earnings call on Tuesday that there are likely to be some layoffs in Zee Entertainment as a part of its strategy to streamline employee costs with the aim of enhancing profitability.
During an earnings call for Q3FY24, Zee CEO Punit Goenka said, "Tightening our belt on manpower will be part of the plan going forward as we talk about frugality."
"I am not saying that there's going to be large levels of layoffs, but we will have to see which are the overlaps," he further added.
This development comes at a time when the stock prices of the media company have faced downward pressure since last month, due to the cancellation of the mega-merger with Sony (Culver Max).
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During the earnings call, Zee's managing director and CEO, Punit Goenka, stated that the company aims to trim expenses and minimize redundancies across its operations following the failure of its merger with Sony Pictures Entertainment.
In the quarter ending December 2023, Zee Entertainment Enterprises (ZEEL) recorded a net profit of Rs 58.5 crore, marking a 140 per cent increase from Rs 24.32 crore in the corresponding period of the previous year.
ZEEL has also set ambitious targets to enhance its financial performance. These include achieving an EBITDA margin between 18 per cent and 20 per cent by FY26. The company is targeting a compound annual growth rate (CAGR) of 8 per cent to 10 per cent for its revenue.
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