20-25% job cuts in 2 yrs: What’s behind broadcast’s pink slip phenomenon?
Additionally, there's a trend towards multitasking; employees are increasingly being asked to handle diverse roles rather than being confined to a single job profile, say experts
In recent years, the broadcast sector has experienced a decline in its workforce. The trend of downsizing and restructuring is prevalent among major broadcasters, reflecting an overall decline in the headcount of the sector by approximately 20-25% over the past 2-3 years, say industry experts.
In April this year, Zee Entertainment Enterprises Ltd announced a workforce reduction of approximately 15% to streamline its management structure. The layoffs affected around 500 employees out of a total of 3,437 permanent employees. Last year, Disney Star too downsized its workforce after The Walt Disney CEO Bob Iyger announced that 7000 positions would be vacated worldwide as part of annual cost-cutting move.
Mergers & soaring content cost
According to Amita Maheshwari, ex HR Head-APAC & India, International Content Operations, The Walt Disney Company and Star India, there are two factors contributing to this shrink in workforce. “First, several consolidations are taking place, and when such mergers happen, most companies either freeze hiring or proceed cautiously, anticipating a larger combined workforce that may necessitate layoffs. Second, there's a rise in content costs. The expense of content has skyrocketed, prompting many companies to tighten their budgets elsewhere.”
“When a merger between two companies is announced, both typically cease hiring altogether. If they do hire, it's usually only for critical skills they cannot do without," Maheshwari explained.
"This trend has contributed to reduced employment numbers in many organizations. I estimate there's been a reduction of 20-25% of the total workforce in the last couple of years,” she added.
Maheshwari, who has worked with large media houses in the past, also highlighted that while numbers may have decreased in the broadcast section, they could have increased on the production side due to the high volume of content being produced.
Sharing a similar thought, Rohit Adya, Co-founder and Director, Alchemist Talent Solutions, highlighted that broadcasters are restructuring their setups due to changes in content creation and consolidation. “They are leveraging cost-cutting measures and outsourcing a significant amount of work in response. This shift is accompanied by advancements in technology and digital platforms, where real-time delivery and multiple content versions are becoming the norm.”
He also noted that the Indian broadcast industry in 2024 has seen a 10% of layoffs.
Other challenges
According to Rajneesh Singh, CEO, Simpli Group, there is a shift in viewership pattern and consumer habits, which is driving the TRPs and affecting revenues. “At a high level, businesses are finding it challenging to maintain the headcount levels seen in previous years. With the increasing influence of technology and digitalization, people are moving away, impacting job dynamics within companies. Opportunities are consequently becoming more limited,” explained Singh.
Singh noted that additionally, there's a trend towards multitasking; employees are increasingly asked to handle diverse roles rather than being confined to a single job profile. For instance, being bilingual or multilingual can now provide advantages, thereby reducing the demand for jobs that are solely language-specific. “Several factors—consumer behaviour, evolving business models, workforce size, technological advancements, and multitasking—are prompting companies to reassess their operational needs,” said Singh, who also estimates that jobs have been by around 20-25% over the past two to three years.
Ultimately, every business aims for profitability, a crucial factor for sustainability and growth, said Singh. He further explained that this pursuit necessitates periodic reviews, cost-cutting measures, and strategic adjustments.
Singh added, “Having worked in the media for many years, I have observed that while manpower remains essential, technological advancements are likely to reduce workforce requirements. It's a reality that many organizations have been reducing headcounts every few years.”
Future of headcount reduction
Industry observers shared that AI's increasing influence is likely to lead to more job cuts across various industries. Skills learned today may quickly become outdated, hence the importance of ongoing learning and adaptability for future career success is needed.
According to Singh, with the rise of AI and its pervasive impact across industries, further reductions in headcounts are expected. “Therefore, continuous upskilling is crucial for employees to remain relevant in a changing job market. Skills acquired today may become obsolete in the coming years, underscoring the importance of ongoing learning and adaptation,” said Singh.
However, Maheshwari believes that once the consolidation is complete, companies will start hiring. Though she mentioned that the companies won't return to the hiring levels of two years ago. “It's likely that hiring will continue to be focused on critical skills only,” said Maheshwari.
Adya explained that in the IT industry, post-COVID, there was initially a downturn with significant cuts and realignment as companies adapted to new technologies such as AI. Hiring focused less on traditional roles and more on specialized areas like AI.
Now, the IT sector has reconsolidated, with hiring opening up again. While not in the same volume as traditional outsourcing, hiring is strategic and focused on future planning and value creation.
“From the consumer and viewer standpoint, demand remains strong across various content genres like sports, Bollywood, Hollywood, and entertainment. News broadcasting is also expanding. There's a noticeable trend towards restructuring and re-engineering platforms for better efficiency and effectiveness in response to these changes. This realignment and evolution are typical in every industry experiencing technological advancements,” said Adya.
