Zee Entertainment Slashes Jobs Amid Revenue Slump, Eyes 20% EBITDA

MEDIA-AND-ENTERTAINMENT
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AuthorRiya Kapoor|Published at:
Zee Entertainment Slashes Jobs Amid Revenue Slump, Eyes 20% EBITDA
Overview

Zee Entertainment Enterprises is intensifying its focus on manpower cost optimization, having already reduced its workforce by 951 employees between FY23 and FY25. This strategic move comes as the broadcast giant grapples with a shrinking pay-TV subscriber base and declining advertising revenue. The company is targeting an 18-20% EBITDA margin by FY26, a significant leap from its current 10.1% in 9M FY26. Deputy CEO Mukund Galgali cited overlaps in linear and digital operations as the genesis for this restructuring.

Workforce Rationalization Amid Headwinds

Zee Entertainment Enterprises (Zeel) is doubling down on cost management, having shed 951 employees over the last two fiscal years. This significant workforce reduction is a direct response to prevailing industry challenges, including a dwindling pay-TV subscriber base and a persistent decline in advertising revenue.

Financial Targets and Current Standing

CEO Punit Goenka emphasized the company's already optimized cost structure, stating its headcount is competitive within the industry relative to revenue earned. The full-time manpower count stood at 2,486 in FY25, a notable decrease from 3,437 in FY23. Employee benefit expenses saw a dip to ₹788 crore in FY25 after rising to ₹880 crore in FY24. The company has set an ambitious target of achieving an 18-20% EBITDA margin by the close of FY26, a substantial increase from the 10.1% recorded in the first nine months of FY26.

Strategic Rationale and Future Outlook

Deputy CEO Mukund Galgali clarified that the headcount rationalization aligns with the company's omnichannel strategy, addressing redundancies between linear and digital operations. Goenka indicated that further optimizations in manpower cost, both in quality and quantity, are anticipated, maintaining industry competitiveness. Advertising revenue, heavily reliant on the FMCG sector, has seen a downtrend, declining 12% year-on-year to ₹2,416 crore in 9M FY26, although encouraging advertiser conversations suggest potential improvements. ZEE5 revenue surged 73% in Q3 to ₹418 crore, turning profitable with an operating profit of ₹56 crore, indicating a potential breakeven trajectory even without one-time income.

Legal and Financial Matters

The company is also navigating arbitration with JioStar over failed ICC TV rights sub-licensing, with the next hearing scheduled for July. JioStar is seeking $1 billion in damages. On the financial front, Zee has deferred further drawdowns on its foreign currency convertible bonds (FCCBs) until deployment visibility improves. As of December 2025, the company held ₹2,184 crore in cash and treasury investments.

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