JioStar To Layoff 1,100 Employees Post Merger, Says Report. Check The Offered Severance Pay
Industry executives suggest that Disney Star already holds a strong position in key regional markets, which could lead to future rationalisation of Viacom18's regional channels, as per the report
JioStar will lay off over 1,100 employees as the newly formed joint venture between Reliance Industries Ltd's Viacom18 and The Walt Disney Co.'s India division eliminates overlapping roles following their merger, according to a Mint report citing multiple sources familiar with the matter.
“The departures started a month ago, and they are not ending anytime soon," said one of the source in the report. The layoffs will continue till June, the report added.
The job cuts are mainly impacting corporate positions in distribution, finance, commercial, and legal departments, with nearly a dozen sources confirming the layoffs to Mint on the condition of anonymity. They revealed that the affected employees include entry-level staff, senior managers, senior directors, and even individuals at the assistant vice-president level.
"So far, sports has remained untouched because the Champions Trophy, Women's Premier League (WPL), and Indian Premier League (IPL) are scheduled back-to-back," said the sources in the report. They also mentioned that several regional entertainment channels, including Colors Kannada and Colors Bangla, have experienced significant workforce reductions.
Industry executives suggest that Disney Star already holds a strong position in key regional markets, which could lead to future rationalisation of Viacom18's regional channels. However, JioStar is also preparing to expand its sports portfolio, with plans to launch new channels.
Reason For Layoffs
The merger of Viacom18 and Disney's Star India has created India's largest media company, and JioStar is now streamlining its operations to enhance efficiencies and focus on high-growth areas, especially sports and digital streaming. “Whenever two large companies with similar businesses merge, redundancies are inevitable. This restructuring is about optimizing resources and reducing duplication, ensuring the JV operates as a leaner and more efficient entity,” said an industry executive familiar with the developments, states the report.
A CEO of a competing company shared that they have been receiving resumes from JioStar employees earning over Rs 1 crore annually, who are now looking to make a move, reveals the report.
Also Read: UBS Layoffs: Firm Cuts Hundreds of Jobs In Switzerland, Says Report
Severance Package
JioStar is offering a "generous severance" package to affected employees, according to the sources in the report. The payout structure provides six to 12 months' salary, depending on the years of service. Employees will receive one month's full salary for each year worked, in addition to the notice period, which ranges from one to three months.
For example, someone with less than six years of service will receive at least seven months of full pay and benefits, including the notice period, while employees with longer tenures may receive up to 15 months of compensation, claims the report.
Even those who haven't completed the mandatory five years for gratuity eligibility will be given a pro-rata payout.
Some affected employees, especially from tech and digital services, may be offered new roles within Jio or the broader Reliance group, according to one of the sources in the report.
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