Network giant ABS-CBN will cease operating some of its businesses. It starts retrenching workers by the end of August.
In addition, it remains without a franchise to operate its free television and radio broadcasts.
ABS-CBN said in a statement on Wednesday that the retrenchment plan is the last resort to ensure that the majority of their workers continue to be working as they work online and via other channels of restricted operations.
“With the non-renewal of its congressional franchise, ABS-CBN is now forced to discontinue the activities of some of its undertakings. And also, introducing a retrenchment plan covering ABS-CBN. Then, its subsidiaries effective end of the business day on 31 August 2020,” said the network.
“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,” they added.
ABS-CBN was Trying Hard to Save the Broadcast
Just two months ago ABS-CBN was the largest television broadcaster in the world. The network hit an estimated 70 million viewers a week before it was ordered to shutter its free-to-air broadcasts.
ABS-CBN assured its workers that they would do everything they could to “mitigate the pain” of losing jobs in the midst of the COVID-19 pandemic.
In other words, it has paralyzed most of the country’s businesses and forced the Philippine economy into recession.
Apart from the advantages of separation and retirement, employees will also be offered a job search service to help them find new jobs.
“We are doing our utmost to mitigate the pain that those affected will feel. It included paying separation, retirement benefits, and providing job placement programs,” ABS-CBN noted.
ABS-CBN previously announced it was losing about P1 billion per month with the closure of free-to-air broadcasts, its main source of earnings. On top operating expenses, it owes banks some P21 billion in long-term debt.
ABS-CBN’s management thanked their workers who have stayed with them through the years, adding that they are praying for them.
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