Job cuts implemented two years in a row alongside other cost-cutting measures have led to a double-digit reduction in the billions of pesos in losses of third-ranked broadcast firm TV5, according to network chair Manuel V. Pangilinan.
In a recent interview with reporters, Pangilinan said TV5 would “most likely” be in the black by 2017.
“Losses will be reduced starting this year, and the program is to reduce the losses until we see the light of day in 2017,” Pangilinan disclosed.
When asked about the recent “voluntary separation” program aimed at further slashing the number of workers, Pangilinan said TV5 should reach an ideal number of employees for it to become profitable.
Without disclosing exact figures, the TV5 chair said losses thus far have already seen a double-digit decline in percentage terms.
Last November, TV5 management again offered a so-called “special limited voluntary separation program” to regular employees.
Those who availed themselves of the retirement package were let go by the network this month.
A similar early retirement program was also dangled to employees in the middle of last year.
Besides regular workers, TV5—just like its bigger rivals ABS-CBN Corp. and GMA Network Inc.—employs a sizeable number of “talents,” who do not enjoy benefits such as employer contributions to the Social Security System, PhilHealth and Pag-IBIG.
Since the Pangilinan-led Philippine Long Distance Telephone Co. (PLDT) group took control of TV5 in 2009, the network remains a far third in the ratings game still dominated by ABS-CBN and GMA.
In 2012, Pangilinan moved to acquire GMA Network, but talks faltered over pricing and regulatory issues.
Besides broadcast media, PLDT also has interest in print, with majority stakes in BusinessWorld and Philippine Star as well as a minority share in Philippine Daily Inquirer. Ben O. de Vera