UTV New Media which has sacked approximately 25 employees from IT Nation a part of the New Media segment, according to sources. “The company has sacked approximately 25 employees in the second round and may sack another 20 employees in the third phase,” confirmed an official from the company.
UTV acquired a 76% stake in IT Nation in May 2008 at Rs 15 crore to enter the digital media space that includes mobile, online and iptv. Till the end of 2008 IT Nation became a 100 % subsidiary of UTV and was a part of UTV new media. UTV, 1st quarter (April09- June09) results reported an EBITDA loss of Rs 9.64 crore in its gaming segment, which was Rs 3.57 crore last year same quarter. And UTV new media reported loss of Rs 2.11 crore in Q1-09 and Rs 0.64 crore last year same quarter. After entering the digital media space, the company had said that it was eager to invest around Rs. 120 croresover the next two years in the digital media space.
Yet during Diwali last year, it sacked around 40 employees in the same segment of New Media. This was the first round of lay offs. “We are shocked at the act of the company. I still can’t figure out how the company can sack us without notice, within an hour,” said an ex employee. IT Nation in its 2008-2009, annual report reported a turnover of Rs. 3.013 crore, and a loss after tax of Rs. 5.66 crore.
“This decision is based on a combination of year end reviews for the employees of UNML and a decision to consolidate teams rendering similar services across various portals that we operate in,” said a company spokes person. - Pallabika Ganguly