ABS-CBN to lay off about 200 employees to keep media company 'on strong financial footing'
ABS-CBN is set to retrench around 200 of its employees to help preserve the company's finances.
In a statement sent to PhilSTAR L!fe on Tuesday, Sept. 15, the multimedia and entertainment company said it is "in the process of re-building and re-creating ABS-CBN towards a new future as a global storytelling company."
ABS-CBN said it is continuing to grow its content business with shows, films, music, and events "reaching more people across platforms in the Philippines and around the world."
According to the media giant, it has received "new investments," which it is viewing as "a vote of confidence in the future of the company." The fresh funds are meant to help ABS-CBN recover and move toward "new successes."
However, since it is a member of the content industry, the company said it has felt the severe effects of weak advertising and consumer spending. The Middle East conflict, high inflation, and low economic growth have just aggravated the situation.
"These events have affected our recovery efforts and we expect these challenges to continue," the statement read.
To mitigate the impact, ABS-CBN has decided to lay off a percentage of its workforce.
"After careful review, we have made the difficult decision to implement a retrenchment program to keep ABS-CBN on strong financial footing," the company said.
"The program will cover around 200 people or 7% of the company's workforce," it continued. "We know this will deeply affect our emlpoyees and their families, and we intend to manage this the way we have always done—with compassion for our Kapamilya."
The statement came after Insider PH reported that ABS-CBN president and CEO Carlo Katigbak announced the move during a town hall meeting with employees on Tuesday morning. Per the report, he said despite new investors coming in, the Lopez family maintains control of the company. Katigbak and chairman Mark Lopez will reportedly keep their positions, while the investors will have seats in the board.
Part of the fresh investments are reportedly earmarked for obligations to banks and employees. The rest will supposedly serve as a buffer against the weak economy.
ABS-CBN has faced massive operational and financial challenges before. In 1972, former President Ferdinand Marcos Sr. shut down the company, which was a radio and television broadcasting company then, when he declared martial law.
In 2020, the House Committee on Legislative Franchises denied ABS-CBN a fresh 25-year congressional franchise, which forced the network to halt its operations and lay off thousands of employees at the height of the COVID-19 pandemic.
