Aboitiz cuts jobs due to pandemic

Ralf Rivas
Aboitiz cuts jobs due to pandemic
The Aboitiz Group says 'several' employees will be laid off by July 31

MANILA, Philippines – The Aboitiz Group, one of the Philippines’ largest conglomerates, will be laying off employees due to the economic strains brought about by the coronavirus pandemic.

Aboitiz did not specify the number of workers, but said “several team members” will be ending their services on July 31.

Affected workers will receive a “substantial separation package to support them through this transition.”

“This was not an easy decision for the Aboitiz Group to make but one that had to be done as it has not been spared by the health and economic crisis,” said Aboitiz Equity Ventures, the holding company of the Aboitiz Group.

The Aboitiz Group owns Aboitiz Power, Aboitiz Land, Aboitiz InfraCapital, Union Bank of the Philippines, and Pilmico Foods.

Aboitiz did not disclose which companies will undergo rationalization, but said operations and maintenance of its “various facilities” remain normal, as they are sufficiently manned and will not be affected by the layoffs.

“It is still not clear how long the COVID-19 pandemic will last but we share everybody’s hope that a vaccine will be developed soon,” Aboitiz said.

Aboitiz posted a massive 42% drop in its earnings for the 1st quarter of 2020 on the back of one-off losses and the coronavirus pandemic.

It also trimmed its capital expenditures for 2020 from P73 billion to P47 billion due to the pandemic. – Rappler.com

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Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.