Winning Bizness Desk

Mumbai.JioStar, a subsidiary of Viacom18, is set to lay off 1,100 employees as part of its restructuring plan following its merger with Walt Disney in November 2024. The merger led to role overlaps, resulting in multiple employees holding similar positions. To streamline operations, the company has decided to eliminate redundant roles, according to sources cited by Mint.

Restructuring to Continue Until June

The layoff process began last month and is expected to continue until June 2025. The company is primarily cutting roles in distribution, finance, commercial, and legal departments, where job redundancies have been identified. This restructuring aims to enhance operational efficiency and reduce costs post-merger.

Employees to Receive Up to One Year’s Salary

To cushion the impact of job cuts, JioStar is offering affected employees severance pay of up to one year’s salary. Employees who joined just a year ago will receive a full month’s salary, while those with longer tenure will receive compensation accordingly. This move is seen as a measure to support employees through the transition.

Largest Entertainment Merger in India

The Viacom18-Disney merger created India’s largest entertainment platform, integrating Disney+ Hotstar and JioCinema under one umbrella. The deal, finalized on November 14, 2024, positioned the new entity as a dominant force in the media industry with a massive reach of 750 million viewers across 120 television channels and two OTT platforms.

Ownership and Leadership Structure Post-Merger

The ₹70,352 crore ($8.5 billion) deal resulted in Reliance holding a 63.16% stake, while Disney retains 36.84% in the merged entity. Reliance has invested ₹11,500 crore in the venture. Nita Ambani has been appointed as the chairperson, while Uday Shankar serves as vice-chairperson, providing strategic direction to the company.

Key Highlights:

• JioStar to lay off 1,100 employees due to role overlaps after the Viacom18-Disney merger.
• Layoffs began last month and will continue until June 2025, mainly affecting distribution, finance, commercial, and legal teams.
• Affected employees will receive up to one year’s salary as severance pay.
• The merger created India’s largest entertainment network, combining Disney+ Hotstar and JioCinema with 750 million viewers.
• Reliance holds a 63.16% stake, while Disney owns 36.84%, with Nita Ambani as chairperson and Uday Shankar as vice-chairperson.