ABS-CBN Corp. is set to retrench about 200 employees, or 7 percent of its workforce, as the media and entertainment company faces weaker advertising and consumer spending amid a difficult year for the content industry.
In an official statement on Tuesday, ABS-CBN said it made the decision after a review of its operations as it seeks to maintain its financial position while rebuilding the company as a global storytelling business.
“After careful review, we have made the difficult decision to implement a retrenchment program to keep ABS-CBN on strong financial footing,” the company said.
The program will cover around 200 people, equivalent to 7 percent of the company’s workforce.
ABS-CBN said the retrenchment comes as the content industry continues to face challenges from the Middle East conflict, high inflation and low economic growth, which it said have contributed to weaker advertising and consumer spending.
“These events have affected our recovery efforts and we expect these challenges to continue,” the company said.
ABS-CBN said it remains focused on growing its content business, with its shows, films, music and events reaching audiences across platforms in the Philippines and abroad.
“We are in the process of re-building and re-creating ABS-CBN towards a new future as a global storytelling company,” it said.
The company also described new investments as “a vote of confidence in the future of the company,” saying these would support its recovery and efforts to achieve new successes.
ABS-CBN said it would manage the retrenchment program with consideration for affected employees and their families.
“We know this will deeply affect our employees and their families, and we intend to manage this the way we have always done — with compassion for our Kapamilya,” the company said.
The latest workforce reduction adds to the continuing restructuring of ABS-CBN as it operates beyond traditional broadcasting and expands its content business across digital platforms, film, music and events.
The company did not disclose the specific positions or business units that would be affected by the latest retrenchment program.
ABS-CBN said it remains grateful to its employees for their service to the company and the Filipino public.
“We are truly grateful to all our Kapamilyas for their dedication, passion, and service to the company and the Filipino people,” it said.
