As a result of franchise loss, ABS-CBN forced to let go more workers.
Former media giant ABS-CBN has to lay off 100 employees due to the effects loss of its legislative franchise.
Four years ago, a cease and desist order from the National Telecommunications Commission (NTC) for ABS-CBN was issued. This order immediately put the media giant immediately off-air which broke many hearts.
As a result of this loss, the former broadcast giant retrenched over 5,000 workers in 2020 due to financial losses. This result reflected that the biggest impact was suffered by the employees whose lives depend on the job they have in ABS-CBN.
In 2022, President Bongbong Marcos spoke about the franchise loss and according to him, he would not block the company from getting another franchise once the issues were resolved. He knows the politically-inclined issues behind but as the new president, he will go after technicalities.
The Lopez-led firm, after the effects of franchise loss, has made another difficult decision.
“The company has made the difficult decision to retrench around 100 or about 3% of its workforce,” the company said in a statement. Currently, they have roughly 3,300 workforce and this number they are letting go is 3% of the population.
“We are committed to providing those affected with full benefits and support, and are deeply grateful for their many years of service to the company and the public,” it added.
This retrenchment affects the entire corporation, not just the news division and this is because of the decline in their advertising revenues.
As stated: “TV industry as a whole has been hurt by lower consumer spending which translated into lower advertising spends.”
Before the corporation lost its franchise, its subsidiaries had 11,071 employees. At the end of 2020, 5,932 personnel left. The company let go of their broadcast-related business units such as its Regional Network Group (RNG).
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