Around 1100 Employees Would be Let Off by JioStar Following the Viacom18-Disney Deal

Over 1,100 employees will be let go by JioStar as the newly established joint venture between Viacom18 of Reliance Industries Ltd. and the India division of The Walt Disney Co. eliminates overlapping responsibilities as a result of the merger. According to media reports, the departures began a month ago and are not going to stop anytime soon. "The layoffs are scheduled to last until June. Corporate positions in the distribution, finance, commercial, and legal departments are the main targets of the job layoffs. Entry-level workers, senior managers, senior directors, and even assistant vice presidents are among those being laid off. Due to the Champions Trophy, Women's Premier League (WPL), and Indian Premier League (IPL) being held back-to-back, sports have not changed as of yet. There have been notable layoffs at a number of regional entertainment channels, such as Colours Bangla and Colours Kannada.

Reason for Layoffs

The largest media firm in India was formed by the merging of Viacom18 and Disney's Star India. JioStar is combining companies to increase efficiency and concentrate on high-growth verticals, including digital streaming and sports. Redundancies are unavoidable whenever two sizable enterprises with comparable operations combine, according to experts and industry observers. In order to make sure the JV functions as a leaner and more effective organisation, this restructure aims to maximise resources and minimise duplication. according to a media report, the CEO of a competing company reported that he was getting resumes from JioStar workers who were prepared to relocate and had yearly compensation packages exceeding INR 1 crore.

Providing a Helping Hand to Employees

According to a media report, JioStar is providing the impacted staff with a "generous severance" compensation. Depending on the number of years served, the payment structure guarantees six to twelve months of wages. In addition to the notice period, which varies from one to three months, the impacted employees receive one month's full wage for each year they have worked for the company. In contrast, people with longer tenure may earn up to 15 months of compensation, while those with less than six years of service will still receive at least seven months of full salary and benefits, including the notice period. A pro rata payout will be given to employees who have not yet reached the required five-year tenure for gratuity eligibility. Some impacted workers might be offered positions in Jio or the larger Reliance ecosystem, especially those in the IT and digital services sectors.

With a post-money valuation of INR 70,352 crore, JioStar wants to compete with streaming behemoths like Netflix and Amazon Prime Video while bolstering its traditional television lineup. Disney owns 36.84% of the business, while Reliance Industries controls the balance through Viacom18 and direct ownership. The new organisation's chairperson is Nita M. Ambani, while its vice-chairperson is Uday Shankar.