MUMBAI: The ripple effect of the global economic meltdown continues to take its toll on companies across the world and India too has been affected by the same.
One such company in the Indian entertainment and media sector, which has undergone the cost cutting exercise, is Saregama India. Sources inform that in a major restructuring exercise, the company has lain off almost 45 employees from its physical music sales division and support staff. This move also comes at a time when physical sales of music have reached its nadir, with the proliferation of the digital media coupled with rampant piracy.
According to information available, senior level professionals who have resigned are Saregama India controller physical sales Milind Lele and Saregama international studio head Parag Kamani.
A source informs Businessofcinema.com, "The company has rationalised its positions in segments that had the most amount of concentration like physical sales, which was de-growing. Additionally, some positions from the logistics and support divisions have also been trimmed. The physical sales team has a different skill set from that of the digital and hence the company felt that it would be inappropriate to absorb them in the digital team."
At the same time, Saregama India is also looking at hiring at least 25 mid-level professionals for its digital music, film and music marketing and television programming divisions along with telecom and radio segments.
Speaking to Businessofcinema.com Saregama India managing director Apurv Nagpal says, "This exercise that has been undertaken is just realignment to business needs."
A company spokesperson added, "The economic climate and dynamics of the music industry prompted us to do an indepth analysis of the organization and re-structure. Some roles had to be merged because of the sharp decline in physical sales of music. Hence rationalization was inevitable and we had to realign our business model. The concentration will now be on digital."
Of the 25 odd new hires, approximately 10 are already in place, whereas the rest will be hired in a stipulated time period.