ABS-CBN Corporation has announced on July 15 that they will lay off workers on August 31.
After the denial of its franchise renewal, the network issued a statement regarding their decision to let go of workers, adding that it is the “only way to ensure the continued employment” of the rest of its employees.
“With the non-renewal of its congressional franchise, ABS-CBN is now forced to cease the operations of some of its businesses and implement a retrenchment program covering ABS-CBN and its subsidiaries effective end of business day on 31 August 2020,” the company said in a statement.
The company, however, said that they will settle their separation and retirement benefits, as well as provide the employees job placement programs.
“The loss of their jobs comes at a time when the uncertain and perilous impact of the COVID 19 pandemic further makes our decision truly difficult, but inevitable,” the statement added.
Since the National Telecommunications Commission (NTC) ABS-CBN to stop its broadcast operations on May 5, the network had been losing PHP30 to 35 million every day in advertising revenues.
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The company’s President and CEO Carlo Katigbak earlier said in a senate hearing that if the network cannot get back on air, they would have no choice but to retrench workers.
In addition, former head of ABS-CBN corporate services group Mark Nepomuceno, noted in the separate hearing that the non-renewal would jeopardize the livelihood of over 11,000 of the company’s employees—including those working in its subsidiaries and those working as independent contractors.
“For those who are affected, we pray for you and your families, that you may have the strength and guidance to deal with the challenges ahead. For all that you have done for ABS-CBN, maraming salamat po,” concluded the statement.
Read ABS-CBN’s statement below:
With the non-renewal of its congressional franchise, ABS-CBN is now forced to cease the operations of some of its businesses and implement a retrenchment program covering ABS-CBN and its subsidiaries effective end of business day on 31 August 2020.
We are doing all we can to mitigate the pain that will be felt by those affected, including paying out separation and retirement benefits and providing job placement programs. The loss of their jobs comes at a time when the uncertain and perilous impact of the COVID-19 pandemic further makes our decision truly difficult, but inevitable.
As much as it hurts us to implement this retrenchment program, this is the only way to ensure the continued employment of the rest of our Kapamilya.
For those who are affected, we pray for you and your families, that you may have the strength and guidance to deal with the challenges ahead. For all that you have done for ABS-CBN, maraming salamat po.
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