JioHotstar to Lay Off 1,100 Employees Following Merger

JioHotstar, the newly formed media company backed by Reliance Industries through Viacom18 after the merger of Viacom18 and Disney’s Star India, is to lay off approximately 1,100 employees. The layoffs, which began in early February, are expected to continue until June 2025. The job cuts are aimed at eliminating overlapping roles across departments, as per the reports.

As of March 7, 12:59 PM, Reliance Industries Ltd is trading at ₹1,249.75, up ₹40.15 (3.32%) today, but down 1.34% over the past month and 15.50% over the past year.

Departments Affected

The layoffs will primarily impact corporate functions, including finance, commercial, legal, and distribution teams. Employees across different levels, from entry-level positions to senior directors, are reportedly affected by the restructuring process.

Severance Package Details

JioHotstar is offering severance packages based on tenure. Employees who are laid off will receive between six and 12 months’ salary. Additionally, for every year completed at the company, an extra month’s full salary will be provided. The notice period ranges from one to three months.

JioHotstar’s Ownership and Market Position

JioHotstar is valued at ₹70,352 crore ($8.5 billion) and is backed by Reliance Industries and The Walt Disney Company. Reliance holds a majority stake through Viacom18, while Disney owns 36.84%. Nita Ambani serves as the chairperson, and Uday Shankar is the vice chairperson.

JioHotstar Launch and Streaming Consolidation

As part of its restructuring, JioHotstar recently launched JioHotstar, a merger of JioCinema and Disney+ Hotstar. The platform, which launched on February 14, offers free content access for limited hours and has subscription plans starting at ₹149.

The combined platform integrates content from both streaming services, with Disney+ Hotstar reporting 333 million monthly active users as of December 2023, and JioCinema reaching 225 million monthly active users in FY24.

Conclusion

The layoffs are part of the broader integration process following the Viacom18-Disney merger. The company has not responded to queries regarding the job cuts. The restructuring is to align resources across different divisions as JioHotstar continues consolidating its operations.

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