In February of this year, on a chilly Friday evening, the National Press Club in Washington extended a warm welcome to journalists who had recently faced job losses, offering complimentary tacos and drinks.

“This is the best place to be in a bad situation,” said a coordinator from the club while distributing complimentary drink vouchers.

But that was America.

There is no such gathering to vent, mingle and network here in India. There is no standardised practice when it comes to firing white-collar employees, not in the media space at least. Not in all organisations for sure.

There are no free tacos and drinks here.

Experts suggest the job loss in the media sector has risen by at least 15 per cent compared to 2023.

Just like media companies worldwide, many Indian media outlets are downsizing. An estimated 200-400 media professionals across print, TV, and digital newsrooms have been laid off in the last 6 months alone.

Laid of media professionals include the likes of reporters and copy editors across levels, video journalists, production professionals, assignment teams and content producers.

Experts attribute this to various factors - the primary factor being ‘rationalisation of costs’. However, broader industry trends are also playing a significant role. For instance, the recent split of BCCL between the Jain brothers has created uncertainty and instability within the media conglomerate. The failed merger between Zee and Sony Pictures Networks India has also disrupted the industry landscape and led to further job losses.

Furthermore, the upcoming merger between Star India and Viacom18 is expected to have substantial implications for the Indian media market, including potential consolidation and restructuring.

“As media businesses navigate an increasingly complex and unpredictable environment, the need to continually reassess and adapt their strategies has never been more critical. The market, industry shifts, technological advancements, policy changes, and political dynamics exert significant pressure on organisation,” said Rajneesh Singh, CEO of Simpli Group, who previously held the position of Group Head HR at Network18 and other companies.

“A recent example can be seen in the media industry, where even the most established entities are not immune to disruption. The recent developments at Zee, where the promoter-founder publicly addressed operational challenges, underscore the broader implications of these changes,” Singh added.

An employee who was laid off last month from a network that ranks in the top 5 media organisations, spoke to e4m on conditions of anonymity. “I have no idea why I was asked to leave at this point. I believe they just had to lay off people as a target. Only a month’s salary and notice period were given before we were shown the exit door.”

“No official mail was given either. About 10 of us were called in, and asked to serve our last month. The pay grade of most fired employees was between Rs 40000 – Rs 50000 only. Under-performance couldn't have been a reason because all of us come with years of experience and it is impossible that a whole lot of us couldn’t perform well,” added the media person.

The same company is said to have shut down many of its smaller bureaus like Patna and Lucknow editions, and laid off employees across national teams.

Insiders said the same company has also fired all its Mumbai bureau reporters barring one. Northeast and Hyderabad digital bureaus too have seen massive layoffs.

“They said they have a mandate to cut off 30 per cent jobs,” said another reporter from the same company who was also laid off last month.

“I have been offered a month’s notice,” they added.

Some call the mass layoffs at this particular company, a part of their ‘consolidation plans’.

A former employee of a media group claims the top bosses promised job security to all employees during one of the takeovers. However, after the acquisition many employees were laid off despite the initial assurance.

“After the merger, they began to disseminate under-performance notices to old employees who were there before the acquisition on baseless grounds. The sad part is that the layoffs have not stopped yet in the company.”
Two other top media companies are preparing for layoffs, it has been learnt. One of these companies, which recently underwent a leadership change, has already cut jobs at the senior management level, has delayed payment of the 'targeted variable pay' and the pay hikes rolled out between April and June.

Earlier this year, in April, ZEE Entertainment Enterprises Ltd.'s MD & CEO, Punit Goenka, proposed a leaner management structure to the Board, in line with his strategic plan. This proposal was part of a broader effort to streamline operations and achieve company goals.

As part of this strategic approach, the MD and CEO initiated a 15 per cent reduction in the workforce. This downsizing is aimed at creating a more efficient and focused team that can better execute the company's future plans.

“The reality is that the landscape is in a constant state of flux, making it nearly impossible for anyone to predict stability anytime soon. Companies are bracing for ongoing changes with frequent restructuring, and a continuous need to pivot. The digital media sector, once hailed as the next big thing, has also faced significant setbacks. This double blow along with television and print media's decline has pushed media companies to think of a leaner approach across the board,” Singh added.

Revenue decline has been a major contributor to layoffs in the Indian media industry. FY24 was a challenging year for TV broadcasting, with both ad and overall revenues falling. TV advertising grew only 7% in 2023, according to the Pitch Madison report.

TV advertising revenue touched Rs 32,886 crore in 2023 but its share decreased from 42 per cent in 2020 to 33 per cent in 2023. Many key players struggled. Sun TV Network's ad revenue declined by 4.2 per cent. Network18's consolidated loss rose to Rs 396.7 crore. However, their ad revenue increased due to sports and reality shows. Zee's ad revenue remained relatively stable.

Print media faced similar challenges. HT Media's consolidated revenue decreased slightly in FY24. Smaller organisations have been hit harder. Many smaller media outlets are on the brink of closure, struggling with monetisation and the reluctance of Indian consumers to pay for content.

On August 21, Delhi-based The Citizen issued a public appeal for support. After 10 years of fearless journalism, the publication is at risk of shutting down due to financial difficulties. They are urging readers to donate and share their appeal to help them continue their mission.

Another major concern is the growing threat of AI. Employers are increasingly optimising work processes with Artificial Intelligence, which could potentially lead to more job losses.

“Media jobs are indeed influenced by AI in many ways, including automation of some of the jobs, content creation, and data analysis. OpenAI’s models ChatGPT and DALL-E are being utilized for creating news articles, social media posts, and visual content and replacing human editors, writers, and other workers,” said Lokesh Nigam, Co-founder and CEO at AI-driven hiring solution platform, Konverz.ai.

A 2023 report by the World Economic Forum revealed that 44 per cent of media jobs could be automated by 2025 due to the application of Artificial Intelligence and Machine Learning.

“Journalists and content creators are now becoming mostly editors or curators of the content created by AI,” Nigam added.

Last but not the least, beyond the threat of AI, another looming danger to job security in the media industry is the increasing consolidation of media ownership.

For instance, the pursuit of cricket rights has become a major financial commitment for many media companies. The astronomical prices paid for exclusive broadcasting rights to major cricket tournaments, like the Indian Premier League (IPL), have significantly strained their budgets. This focus on rights’ acquisition has often led to reduced investments in other areas such as talent.

Globally, the media industry is facing similar challenges. BuzzFeed News closed, and major organizations like NBC News, Vice News, Business Insider, and Condé Nast have implemented significant layoffs.

According to Challenger, Gray & Christmas, Inc., a global outplacement firm, the US media industry, including television, film, streaming, and news, announced 8,410 job cuts so far this year. This is down 52 per cent from the 17,436 announced through May 2023.

Within the news sector, which includes digital, broadcast, and print, 55 layoffs were announced in May alone. This brings the total number of job cuts in the news sector to 2,239, up 14 per cent from the 1,972 cuts tracked during the same period last year.

Experts are not hopeful that the current scenario will change anytime soon.

“Going ahead, the cycles of restructuring and cost-cutting are expected to become the norm. This will have profound implications for those seeking careers in the media sector,” said Singh.

“From an HR perspective, the first quarter of the financial year has already seen significant actions, with non-performers being moved out and tough decisions being made about cost-cutting measures. Offices, bureaus, and entire verticals have been shut down in response to financial pressures. The focus on return on investment (ROI) has intensified, leading to more frequent, and sometimes reactive, business decisions,” he said.

As the year progresses, particularly as we approach the festive season, there may be a slight uptick in business activity. However, the overall outlook remains cautious, shared experts.