Cost cutting at Zee: Punit Goenka proposes to cut 15% workforce for leaner organisation structure

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Punit Goenka, CEO and MD of Zee Entertainment and Enterprises Limited, on Friday said he has proposed the implementation of a lean and streamlined management structure to the board, which will be a ost-effective operational model. He said the proposal is in line with his strategic plan focused on achieving the targeted goals for the company.

Zee added that in line with Goenka’s overall strategic approach, he has “initiated the process of rationalisation of the workforce by 15 per cent, which will prune the staff strength across the company to arrive at a streamlined team

“In line with his overall strategic approach,    the MD and  CEO  has initiated the process of rationalisation of the workforce by 15%, which 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. The proposed structure is aimed at arriving at a cost-effective operational model with speed and agility as the core areas of focus. 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,” the company said in a regulatory filing.

Goenka said: “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.”

He added that 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 its stakeholders going forward.

The company said the proposed organisation design would see every team member of the lean structure function as a partner and co-owner of the Company, emphasizing a sense of ownership and accountability among employees.

On organisational changes, Zee said that 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, Goenka will take direct charge of the critical business verticals leading to cross-functional collaboration, quick decision making and higher productivity levels.

The company said the core of the new operating structure will be centered around content creation, which is identified as the company’s core strength.

Commenting on the rejig, R. Gopalan, Chairman of ZEE, said: “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.” 

On April 2, Goenka announced his decision to implement a 20 per cent reduction in his remuneration. “Frugality, Optimization and a Sharp Focus on Quality Content are the three key tenets of the plan implemented by Punit Goenka, to drive the company to the targeted goals; and the above mentioned voluntary decision, is in line with this approach,” Zee said in a statement.

Last month, the company board institutionalised a structured Monthly Management Mentorship (3M) Program. The objective of the 3M Program is to guide and enable the management team to achieve key performance metrics, including the targeted 20% EBITDA margin, proposed by the MD & CEO, the company stated.



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