ABS-CBN lays off 100 more as ad revenues continue drop
The Lopez family-led ABS-CBN Corp., which has yet to erase its balance sheet losses, has retrenched another batch of employees amid financial struggles due to declining ad revenues.
In a statement on Wednesday, the media group said it “made the difficult decision” of laying off around 100 employees, or about 3 percent of its workforce.
“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 to the public,” ABS-CBN said.
A source told the Inquirer that the layoffs were announced during an online meeting that lasted about an hour on Tuesday afternoon, with ABS-CBN News head Mary Ann Francis Toral presiding and no other top management officials present.
Many departments were affected by the retrenchment, including some reporters and cameramen, the source added.
Need to let go
ABS-CBN supervisors union president Raul De Asis, in an interview with the Inquirer, said the management decision was “painful” to the employees but that it was necessary to let go of some more personnel to keep the business running.
In its statement, ABS-CBN said the decline in advertising revenues had been hurting its bottomline.
Last year, ad revenues rose by 16 percent to P6.7 billion, but it was still way below the P22.94 billion reached in 2019, when the company still had its free TV franchise. The network ran into a political storm the following year, when the House of Representatives, dominated by the allies of then President Rodrigo Duterte, rejected its franchise renewal.
The crippling blow to the broadcast giant saw ad placements going to its rivals.
In July 2020, two months after its franchise expired, the company announced it would begin retrenching employees, which then numbered around 11,000, including those in ABS-CBN subsidiaries.
By 2021, it was reported that the company had laid off 4,552 staffers, including 2,674 regulars.
The company’s losses widened nearly fivefold to P12.84 billion last year as production costs also soared. In the first half of 2024, ABS-CBN trimmed its net loss by 5 percent to P2.13 billion thanks to a slowdown in expenses.
“The TV industry as a whole has been hurt by lower consumer spending which translated to lower advertising spends,” ABS-CBN explained.
‘Rewind,’ Bini success
Still, the Lopez media group cited “significant progress in many of its businesses this year,” like its production of “Rewind,” the Dingdong Dantes-Marian Rivera starrer that went on to become the highest grossing Filipino film of all time.
Longtime offerings like the “Batang Quiapo” teleserye and “It’s Showtime” midday variety show have been enjoying good ratings, it added.
The media group has also shaken up the music industry with the launch of the all-girl pop octet Bini, who’s been topping the charts and pulling off sold-out shows.
Pivot to digital
Since losing its free TV franchise for about four years now, the group has pivoted to digital platforms to stay afloat and keep loyal audiences.
It signed a content-sharing agreement with the Villar-owned Advanced Media Broadcasting System in April to air the Kapamilya network’s classic television series on ALLTV.
The collaboration expanded the presence of ABS-CBN content in the free-to-air TV space, in addition to the company’s blocktime leasing deals with TV5, GMA and A2Z. —With a report from Inquirer Research
