Mass Layoffs as Part of Post-Merger Restructuring
JioStar, the newly formed joint venture between Reliance Industries’ Viacom18 and Walt Disney Co.’s India unit, is set to lay off over 1,100 employees as part of its post-merger restructuring efforts. The job cuts, which have already begun, will continue through June, affecting roles across multiple departments, including distribution, finance, commercial, and legal. The move is aimed at streamlining operations and eliminating redundancies created by the merger of two major media entities.
Streamlining Operations After India’s Biggest Media Merger
The Reliance-Disney merger has resulted in the creation of India’s largest media conglomerate, valued at ₹70,352 crore. This consolidation has led JioStar to reassess its workforce, ensuring a more efficient structure while avoiding overlapping roles. Employees at all levels, from entry-level staff to senior managers and assistant vice-presidents, have been impacted by the layoffs.
While JioStar has been cutting jobs in its regional entertainment teams, particularly in channels like Colors Kannada and Colors Bangla, its sports division remains unaffected. With major events like the IPL, Women’s Premier League (WPL), and Champions Trophy lined up, the company is prioritizing its sports broadcasting sector. A source close to the company stated that whenever two large companies merge, redundancies are inevitable, and the objective is to optimize resources while making operations leaner and more effective.
Severance Packages and Employee Support Measures
To support employees affected by the layoffs, JioStar is offering severance packages that vary based on tenure. Employees will receive a month’s salary for every completed year of service, along with their notice period, which ranges from one to three months. Those who have spent less than six years with the company will receive a minimum of seven months’ salary, including their notice period. Employees with longer tenures could receive up to 15 months’ compensation. Additionally, even those who have not completed the mandatory five-year tenure for gratuity will receive a pro-rata payout.
While most affected employees will leave the company, some, particularly from the tech and digital services departments, may be offered roles within Jio or other Reliance Group companies as an alternative to layoffs.
JioStar’s Growth Strategy: Betting Big on Streaming and Sports
Despite the layoffs, JioStar is aggressively expanding its presence in digital entertainment and sports broadcasting to compete with global streaming giants like Netflix and Amazon Prime Video. The company is making significant investments in these sectors, with an ambitious ad revenue target of ₹5,000 crore for IPL 2025.
JioStar’s content portfolio includes top TV channels such as Star Plus, Star Gold, Star Sports, and Colors. It is also strengthening its digital streaming business with the recently merged JioStar platform, which aims to reach over a billion Indian viewers.
Future Outlook: Balancing Expansion with Workforce Optimization
As JioStar continues its consolidation efforts, industry experts believe further workforce restructuring, particularly in regional entertainment, may follow. The coming months will determine how efficiently the company manages its ambitious expansion plans while optimizing its workforce to create a leaner and more competitive media giant.
