The Aboitiz Group, one of the Philippines’ largest conglomerates, announced it is laying off employees as the COVID-19 pandemic impacts its businesses and forces a shift in strategy.
The company announced on Tuesday the “rationalization of its workforce” effective by July 31.
“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,” it said.
The employees, it added, “will receive a substantial separation package to support them through this transition.”
Aboitiz Equity Ventures (AEV) is a Philippine holding company based in Cebu City. The conglomerate operates in four sectors: consumer goods, utilities, financials, and industrials. In 2017, the company was ranked 1793rd on the Forbes Global 2000.
The coronavirus pandemic also forced the company to change its business strategies, such as cutting infrastructure projects that could affect Aboitiz’s proposed projects in airports and shared cell towers.
According to a company source, Aboitiz was cutting back on expansion and would impose more work-from-home measures due to the COVID-19 crisis.
“The ones affected are those [new projects] that were just about to run,” the source said.
The Aboitiz Group is included in the Naia Consortium, which offered to upgrade and expand Manila’s Ninoy Aquino International Airport and help in decongesting the airport.
However, the coronavirus crisis also severely hit the aviation industry, which affected the viability of this project.
“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,” the company said. “The Aboitiz Group is confident the Philippines can weather this crisis, and the country will continue with its economic growth.”
It “remains committed to being an active player in the Philippine economy through its power, food, banking, infrastructure, land, and construction business units,” the statement said.
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Aboitiz Group Holdings
- Aboitiz Power Corporation
- Union Bank of the Philippines (UnionBank)
- City Savings Bank (formerly Aboitiz Bank), savings bank of UnionBank
- PETNET
- Ramon Aboitiz Foundation Inc. ( RAFI Microfinance)
- Pilmico Foods Corporation
- Gold Coin
- Aboitiz InfraCapital
- The Republic Cement Group
- APO Agua Infrastructura
- Aboitiz Construction, Inc.
- Aboitiz Land, Inc.