Business

Ghost month massacre: ABS-CBN to lay off up to 90% of workforce on Aug 31, remaining staff to absorb pay cuts

The Lopez-led management is letting go off up to 90 percent of ABS-CBN Corp.’s workforce by August 31, BILYONARYO has learned.

The former media giant held a town hall meeting on July 15 to inform its thousands of employees on its survival plan after going black screen on May 5, a day after its franchise expired.

Management explained that it was left with no choice but to scale down its workforce following its failure to get a franchise last Friday,

With zero hope of getting back on air (at least until 2022 if a more friendly administration takes power), management admits that its cable and online operations would not sustain its current business model.

Management said that divisions with 100 people could be reduced to as low as 10 in the retrenchment plan.

Department heads and human resources staff have been tasked to announce who will be let go and how much retirement and separation benefits they would receive.

For those who would be retained, management said they would have to take massive pay cuts.

This is the statement of management aired on TV Patrol:

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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