Culver Max Entertainment, formerly Sony Pictures Networks India (SPNI), gears up to slash its workforce by about 10 per cent in a major cost rationalisation and restructuring push. The layoffs target around 120 employees across India, set to kick in from the next financial year following a thorough internal audit by Boston Consulting Group. Under new CEO and MD Gaurav Banerjee, the network aims to streamline operations, curb rising expenses, and realign content spending with sluggish revenue trends in a cutthroat media sector.
BCG Review Targets Overlaps in TV and Digital Ops:
SPNI brought in global consultancy BCG to scrutinise its television channels and SonyLIV streaming platform, hunting for redundancies and waste in key areas. The audit digs into programming choices, marketing spends, rights deals, and support roles, spanning both linear TV and the OTT arm. Sources say the exercise prioritises sustainability over unchecked growth, plugging gaps where costs balloon faster than income.
Banerjee launched the mandate amid pressures from intensifying competition in sports broadcasts, general entertainment, and online content. Executives note content bills climbing quicker than topline figures, forcing a hard look at every rupee spent. The review promises tighter controls, sharper focus on high-return investments, and a slimmer setup without gutting essential functions.
Key Exit Signals Broader Leadership Shifts:
Top-level changes, such as Danish Khan’s resignation as SonyLIV and Studio NXT’s business leader, coincide with workforce reductions. Khan led Sony Entertainment Television before assuming control of SonyLIV in 2019. He spent more than 20 years at SPNI throughout two spells. He stays until March 31 to ensure a smooth transition before pursuing new endeavors.In addition to the SonyLIV platform, SPNI offers 28 channels in a variety of languages and genres. Revenues for the fiscal year 2024 were Rs 6,511 crore, with a net profit of Rs 840 crore. Subscriptions brought in Rs 3,206 crore, while advertisements brought in Rs 2,825 crore. However, experts point out that content expenses are exceeding growth, particularly as competitors invest more in sports rights and original programming in the face of changing consumer preferences.
Industry Echoes Cost Pressures:
The layoffs at Culver Max echo a grim pattern across Indian media, where firms like Disney Star and Viacom18 have already axed hundreds amid mergers and streaming bets. Rising content costs, especially for IPL rights and big films, squeeze margins as ad revenues stagnate and linear TV bleeds viewers to OTT. Banerjee’s aggressive reset positions SPNI to compete with JioStar’s scale, but employees brace for uncertainty. Sources say voluntary exits and redeployments soften the blow, yet the 120 jobs lost signal deeper cuts ahead unless revenues rebound. This overhaul tests whether leaner operations can revive profitability in a fragmented market hungry for consolidation.
Restructuring Sets Stage for Leaner Media Play:
Although company executives remain silent about the layoffs, insiders attribute them to strengthening the company as TV viewership declines and internet revenue falls. In a phased rollout following assessment, the 10% reduction targets BCG-flagged duplicates throughout Indian operations. This is similar to industry-wide pressures that force broadcasters to reconsider their large teams in the age of streaming.
Banerjee’s motivation highlights a shift toward profitability by prioritizing lean teams and astute content choices over sprawl. Sony’s reset prepares for long-term struggles with traditional TV cooling and online monetization. The pace will be determined by the audit’s final decisions, but the message is clear: in today’s media grind, efficiency takes priority above expansion.
