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Following the merger between Viacom18 and Disney’s Star India in November 2024, JioStar is set to lay off approximately 1,100 employees. This move, aimed at eliminating redundant positions, is part of a broader restructuring initiative after the formation of JioStar, India’s largest media and entertainment entity.
Job Cuts to Impact Corporate Positions
According to sources close to the matter, the layoffs began a month ago and are expected to continue until June 2025. The affected roles primarily impact corporate functions such as distribution, finance, commercial, and legal departments. As JioStar seeks to streamline operations, redundancies have become inevitable.
An industry executive explained, “Whenever two large companies with similar businesses merge, redundancies are inevitable. This restructuring is aimed at optimising resources and eliminating duplication to ensure that the joint venture operates as a leaner and more efficient entity.”
Generous Severance Packages for Affected Employees
JioStar is reportedly offering generous severance packages to those affected by the layoffs. Employees being let go will receive six to twelve months’ salary, depending on their tenure with the company. For each year of service, employees will be given one month’s full salary, in addition to a notice period ranging from one to three months.
JioStar’s Ambitious Plans to Compete in Streaming
JioStar, valued at Rs 70,352 crore, is now positioned to compete with major streaming platforms like Netflix and Amazon Prime Video, while also bolstering its television business. The company’s majority stake is owned by Reliance Industries through Viacom18 and direct ownership, with Disney holding a 36.84% stake.
The new company is led by Nita Ambani as chairperson and Uday Shankar as vice-chairperson, focusing on high-growth sectors such as sports and online streaming.
