Zee Abruptly Shuts Down Its Tech Subsidiary, Reportedly Leaving Employees Unpaid (Image source: Canva)
Financial Woes at Zee Entertainment
While Zee Entertainment reported a 140 per cent increase in profit to Rs 58.5 crore in the December quarter of FY24, its profit plummeted by 52 per cent sequentially. Chief Financial Officer Rohit Gupta attributed this downturn to merger expenses and related exceptional items, amounting to approximately Rs 60.3 crore during the quarter. The terminated merger deal with Sony dealt a significant blow to Zee Entertainment’s financial stability, leading to drastic measures like cutting its workforce, including laying off 50 per cent of the staff at its Technology & Innovation Centre in Bengaluru.
The Silent End: Lack of Communication and Unpaid Dues
Employees of Sugarbox were blindsided by the closure, informed through a virtual call with no prior written communication. Uncertainty looms over pending salaries for February and March, leaving employees grappling with financial insecurity. Reportedly, some received letters stating that their resignations had been accepted and their dues cleared, adding a surreal twist to their sudden unemployment.
Broken Promises: Unfulfilled Assurances and Salary Delays
Sugarbox employees were repeatedly assured of imminent funds from Zee, keeping them tethered despite persistent salary delays. However, these promises remained unfulfilled, plunging employees into a cycle of uncertainty and financial strain. Messages from company executives hinted at impending financial injections from Zee, offering false hope amidst mounting despair.
The Dream Dashed: From Promise to Peril
Initially hailed as a beacon of innovation, Sugarbox’s trajectory took a downward spiral as Zee Entertainment reevaluated its investment amidst the pandemic-induced uncertainty. Despite early successes, including partnerships with metro rail services and government tenders, Sugarbox fell victim to Zee’s shifting priorities and financial constraints.
Echoes of Despair: Layoffs and Unanswered Questions
Sugarbox’s closure wasn’t its first brush with adversity; layoffs had already struck in September 2023, signaling the beginning of the end. Co-founder Rohit Paranjpe’s revelation that employment contracts had been terminated months prior added insult to injury for employees left grappling with unanswered questions and unmet promises.
