Staff-linked cost rationalisation complete: ZEE

According to Zee Entertainment Enterprises (ZEE), a significant portion of the employee-related cost rationalization has been completed, and the company will now concentrate on keeping an ideal cost structure in order to meet business needs.

“The largest part of the rationalization in terms of people has already happened,” ZEE CEO Punit Goenka said on an earnings call on July 31, after the first-quarter results were announced.

Mukund Galgali, interim chief financial officer of ZEE, stated that the organization will prioritize keeping an ideal structure to meet operational needs.

ZEE’s consolidated employee benefit costs decreased by 12% to ₹225 crore in the June quarter. Its employee benefit expense for the fiscal year that ended in March was ₹1,018 crore.

700 of ZEE’s 4,500 employees were impacted by the 15% personnel reductions made across all functions as part of the company’s restructuring. Before then, half of the employees at the Technology & Innovation Center in Bengaluru had been let go by the corporation.

The corporation terminated its merger agreement with Sony Pictures Networks India, which prompted the drastic cost-cutting measures. CIO News