 "Viacom18 and Walt Disney merger effect: Jio to lay off 1,100 employees")
JioStar will lay off approximately 1,100 employees to cut overlapping roles after its parent company Viacom18’s merger with The Walt Disney in November 2024, reported Mint, citing multiple sources aware of the matter.
The layoffs, which reportedly began a month ago, are expected to continue until June 2025, as part of a merger-driven restructuring to eliminate redundant roles.
Sources familiar with the matter, speaking to Mint on condition of anonymity, said these jobs cuts primarily impact corporate positions in distribution, finance, commercial, and legal departments.
Viacom18 and Disney’s Star India have merged to form JioStar, India’s largest media and entertainment company. The new entity aims to enhance efficiency and focus on high-growth sectors, particularly sports and online streaming.
“Whenever two large companies with similar businesses merge, redundancies are inevitable. This restructuring is about optimising resources and reducing duplication, ensuring the JV operates as a leaner and more efficient entity,” an industry executive tracking the developments told Mint.
JioStar is reportedly offering a ‘generous severance’ package to affected employees. Employees on notice will receive six to 12 months’ salary, depending on how long they have worked at the company.
For every year completed, employees will get one month’s full salary, plus a notice period of one to three months.
JioStar, valued at Rs 70,352 crore, aims to compete with streaming giants like Netflix and Amazon Prime Video while strengthening its television business. Reliance Industries owns a majority stake through Viacom18 and direct ownership, while Disney holds 36.84 per cent. Nita Ambani is the chairperson of the new company, and Uday Shankar is the vice-chairperson.