ABS-CBN Corp. said Wednesday it will start laying off workers by Aug. 31 after it failed to secure a new franchise from Congress.
“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 Aug. 31, 2020,” the broadcast unit of the Lopez Group said.
“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,” it said.
ABS-CBN Corp. said the loss of jobs during the uncertain and perilous impact of the COVID-19 pandemic further makes the 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,” ABS-CBN said.
The company did not provide the number of employees that would be affected.
ABS-CBN and subsidiaries had 6,730 regular employees, 900 non-regular employees and 3,325 talents and project-based employees as of 2018.