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| Network18 lays off 200 staffers |
| BS Reporter / Mumbai Nov 21, 2009, 01:01 IST |
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Network18 is laying off 12 per cent of its permanent staffers (about 200 people) as part of a major restructuring exercise, which will see the broadcast operations of the company’s Hindi and English business news channels getting merged.
Network18 is one of India’s leading media conglomerates, with interests in television, print internet, films, mobile content and allied businesses.
In a statement to the Bombay Stock Exchange, the company said it was merging “overlapping and common operations at the back-end” of CNBC TV18 and CNBC Awaaz. Both channels will continue to maintain separate identities, the company said. CNBC TV18 is the market leader in the English business news space.
The move, the company said, will result in annual savings of 20 per cent of operating costs, which would be Rs 65 crore in cost and interest savings. It will also contribute towards the company’s commitment — at the time of its rights issue — to retire about Rs 300 crore in debt. For the quarter ended September, TV18 posted net losses of Rs 56 crore and revenues of Rs 118 crore. The company will take a one-time extraordinary restructuring charge in the current quarter, and the synergies are likely to result in savings from the next quarter, the company said.
Both channels will maintain their distinct identities and only some of the overlapping and common operations at the back-end are being merged, according to the company release.
Sources familiar with the developments said the job cuts would mostly affect technical staff in broadcast operations — cameramen and technicians across the country. A few journalists have also been asked to go, with two-three months salary.
Haresh Chawla, Group CEO, Network18, said: “It is our belief that the next stage of growth and profitability of our business news operations will come from a more synergistic entity that combines the strength of two powerful and complementary brands. TV18 has already embarked on a path to financial restructuring as mentioned in the rights issue offer. Both these moves put together will make TV18 more robust in operating as well as financial terms.”
Both moves will help the company return to better operating margins and profitability, the release said.
IBN-Lokmat's office attacked
Meanwhile, PTI reported that suspected Shiv Sena activists ransacked the office of Marathi news channel IBN-Lokmat in suburban Mumbai on Friday, assaulting journalists and damaging furniture.
The attackers barged into the Vikhroli office and thrashed staff members, Deputy Police Commissioner R M Vatkar said. The news channel claimed the attackers were shouting slogans in support of the party and its chief Bal Thackeray.
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