Some of the leading newspaper publishing groups are also under stress from ownership re-alignments, which is a natural outcome of an industry that is mostly family-owned and managed. Like everywhere else in the world, the prime downtown real estate of some newspaper groups is seen as a better opportunity for development and realization than the print media industry. Newspaper editorial teams and production plants are moving. Some are being readied for family partition and perhaps investor acquisition.
On the employee side of the business, Times Internet Limited, the digital division of Bennett Coleman, has laid off over 120 employees over three days starting 13 December as confirmed by several executives on the Newslaundry website. Apparently, all the employees were given three-month severance packages starting from the date they were laid off. Their email addresses were immediately terminated.
This is the second round of layoffs at Times Internet after 100 employees lost their jobs in August this year. At the time, TIL issued a statement promising it was a ‘one-time exercise,’ as confirmed by senior executives. Thus, the employees did not anticipate the current layoffs.
“No one was aware and everyone was taken by deep surprise,” a senior executive said to Newslaundy. Another added, “They did not even inform the vertical heads. The layoffs have been done in a secret and discreet manner by calling people one by one over the phone.” Several employees said that they were only told that their units had either ‘performed badly’ or were ‘unprofitable.’
A Times Internet spokesperson told Newslaundry that layoffs are a reflection of the division between the two major owners of the group who have agreed to split the group into two. He said the layoffs are a part of the division process which has been agreed to and is expected to be effected on the ground by March 2024.
Reportedly, the division of the Bennet Coleman group is based on an agreement to divide the assets so that Samir Jain gets the print business and the online media platforms, while younger brother Samir Jain gets the broadcast, radio, and some digital properties together with a cash settlement of Rs. 3,000 crore. The print business has generated the major revenue for the group and is by and large profitable.
