- Carlo Katigbak previously stated in one hearing that they may be forced to begin a retrenchment by August.
- Kapamilya talents post about their sadness regarding the company’s decision.
ABS-CBN has been off-air since the National Telecommunications Commission issued a cease and desist order to the network.
With that, the company faced difficulty with their shows, employees’ salary, and the allegations thrown at them during the House Committee’s hearing regarding their application for another 25-year franchise.
It is said that the Kapamilya network suffered a net loss of around 30 to 35 million a day in advertising revenues. CEO Carlo Katigbak said in a Senate hearing last May that if ever the company “cannot get back on air soon” it would begin its retrenchment by August.
With Congress’ decision to deny ABS-CBN’s application, ABS-CBN announced that it would cease the operations of some of its businesses and lay off workers starting August 31, 2020.
“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,” the official statement read.
Kapamilya artists can’t help but state their sadness with this decision.
Veteran singer Ogie Alcasid posted a short prayer for those who are faced with sudden unemployment and hoped that they will heal from a difficult time.
Abba Father, please take care of those who will lose their jobs and even those not involved with our company that have lost their jobs too. Times are really difficult. We humbly bow down before you and repent for… https://t.co/OU2EQUl24I
— ogie alcasid (@ogiealcasid) July 15, 2020
“God bless us all,” Zsa Zsa Padilla tweeted with the link of the news article.
😔 God bless us all READ: ABS-CBN statement on layoff of workers | ABS-CBN News https://t.co/sFLJ8TU8T1
— zsa zsa padilla (@zsazsapadilla) July 15, 2020
John Lapus said that he can’t help but get emotional inside the car upon hearing the unfortunate news.
— John Lapus (@KorekKaJohn) July 15, 2020
ABS-CBN Corporation and its subsidiaries has more than 11,000 employees, including those classified as independent contractors.
Read ABS-CBN’s full statement below:
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.