ABS-CBN is grappling with the ongoing effects of its television franchise loss in 2020, prompting the company to announce the layoff of approximately 100 employees, accounting for about 3% of its workforce.
This difficult decision was communicated during an internal meeting held by the Lopez family-led media group on Tuesday.
In a statement to InsiderPH, ABS-CBN expressed its commitment to providing full benefits and support to those affected, acknowledging their years of service to the company and the public.
The layoffs come as the television industry as a whole faces significant challenges, including lower consumer spending that has led to reduced advertising expenditures. ABS-CBN noted that it is also affected by a global decline in the pay TV sector.
Despite these hurdles, the company reported a 5% reduction in losses during the first half of 2024, totaling ₱2.1 billion, even as revenues fell 11% to ₱7.8 billion. ABS-CBN has managed to meet its debt obligations while negotiating new terms with lenders.
Since the non-renewal of its TV franchise during President Rodrigo Duterte’s administration, which resulted in thousands of job cuts, ABS-CBN has made progress in minimizing its financial losses.
The media giant highlighted improvements in various business segments this year, including rising TV ratings and successful film productions.
Notably, ‘FPJ’s Batang Quiapo’ has emerged as the highest-rated TV show in the Philippines, while ‘It’s Showtime’ continues to dominate the noontime slot. Additionally, Star Cinema has released two successful films this year, including one that has become the highest-grossing Filipino movie to date. The company’s music division has also experienced a boost in popularity, particularly due to the rise of girl group BINI.
In a strategic move to strengthen its operations, ABS-CBN’s SkyCable recently entered a commercial agreement with Dennis Anthony Uy’s Converge ICT Solutions. This partnership will enhance Sky’s service offerings for subscribers by leveraging Converge’s nationwide fiber internet network, addressing some of the financial losses faced by the company.
As ABS-CBN navigates these challenges, it remains focused on recovery and growth across its various sectors, aiming to stabilize its operations in the competitive media landscape.
