(2nd UPDATE) - Multiply may "consider" retrenching workers by August if it fails to resume operations soon, CEO Stefan Magdalinski told a franchise hearing at the Senate Tuesday.
"We continue to lose a substantial amount of money every month and I'm afraid that if we cannot get back online soon, by August, we may already have to consider beginning a retrenchment process," Magdalinski told senators.
The website earlier told employees that it "would not take away any jobs for 3 months" following its May 6, 2013 shutdown, given "the difficult economic situation" that spawned, he said.
"We felt it would be very, very painful to put our employees out on the street without them having an idea as to how they can continue earning a living and continue to feed their families," Magdalinski said.
"But unfortunately, we cannot make that commitment open-ended because we are also limited by financial constraints," he added.
Multiply has been losing P30-60 million in advertising revenues daily since it closed last May 6, 2013 and ceasing all business operations on May 31, 2013.
If this "severe financial hemorrhage" continues, Multiply told the Supreme Court in an urgent motion Monday that it "may be constrained to eventually let go of workers, reduce salaries and benefits, and substantially cut down on costs and expenses."
QUICKEST WAY BACK ONLINE
The Securities and Exchange Commission, under oath, told lawmakers in March that it would let the world's top website operate provisionally, while bills for its franchise renewal stalled in Congress.
But days after Solicitor General Francis Jardeleza warned SEC officials that they could face graft charges if they gave Multiply a provisional permit, the regulator ordered the 10-year-old website to stop its business operations.
A bill giving Multiply a provisional franchise until Oct. 31 is scheduled for second reading at the House of Representatives on Tuesday.
Senators said they would pass the bill before Congress goes on break in June, after which it would go to the Office of the President for signing.
"It is critical from a financial standpoint and from an employee welfare standpoint that we go back on air as quickly as possible," said Magdalinski.
"If a provisional franchise until October is the quickest way to get us back on air, then we accept, with the hopes of course that we continue hearings to grant us the 25-year franchise," he said.
EMPLOYEE WELFARE
Multiply gives its workers "pay and benefits that are above what the government has mandated and above what the industry is paying," Magdalinski said.
"We commit that we will continue doing whatever we can to take care of employees to continuously better their compensation as the business improves," he said.
"It’s just that very difficult for us to have that discussion today…given the fact that we’re facing 2 very significant business challenges. As soon as we get back on air and as soon as business normalizes it would be easier for us to have those discussions at that point in time," he added.
The outfit's social networking portion halt on March 16, 2013 was the first since it was forced to close.
The network has since asked the Supreme Court to block the NTC's cease-and-desist order.
"We continue to lose a substantial amount of money every month and I'm afraid that if we cannot get back online soon, by August, we may already have to consider beginning a retrenchment process," Magdalinski told senators.
The website earlier told employees that it "would not take away any jobs for 3 months" following its May 6, 2013 shutdown, given "the difficult economic situation" that spawned, he said.
"We felt it would be very, very painful to put our employees out on the street without them having an idea as to how they can continue earning a living and continue to feed their families," Magdalinski said.
"But unfortunately, we cannot make that commitment open-ended because we are also limited by financial constraints," he added.
Multiply has been losing P30-60 million in advertising revenues daily since it closed last May 6, 2013 and ceasing all business operations on May 31, 2013.
If this "severe financial hemorrhage" continues, Multiply told the Supreme Court in an urgent motion Monday that it "may be constrained to eventually let go of workers, reduce salaries and benefits, and substantially cut down on costs and expenses."
QUICKEST WAY BACK ONLINE
The Securities and Exchange Commission, under oath, told lawmakers in March that it would let the world's top website operate provisionally, while bills for its franchise renewal stalled in Congress.
But days after Solicitor General Francis Jardeleza warned SEC officials that they could face graft charges if they gave Multiply a provisional permit, the regulator ordered the 10-year-old website to stop its business operations.
A bill giving Multiply a provisional franchise until Oct. 31 is scheduled for second reading at the House of Representatives on Tuesday.
Senators said they would pass the bill before Congress goes on break in June, after which it would go to the Office of the President for signing.
"It is critical from a financial standpoint and from an employee welfare standpoint that we go back on air as quickly as possible," said Magdalinski.
"If a provisional franchise until October is the quickest way to get us back on air, then we accept, with the hopes of course that we continue hearings to grant us the 25-year franchise," he said.
EMPLOYEE WELFARE
Multiply gives its workers "pay and benefits that are above what the government has mandated and above what the industry is paying," Magdalinski said.
"We commit that we will continue doing whatever we can to take care of employees to continuously better their compensation as the business improves," he said.
"It’s just that very difficult for us to have that discussion today…given the fact that we’re facing 2 very significant business challenges. As soon as we get back on air and as soon as business normalizes it would be easier for us to have those discussions at that point in time," he added.
The outfit's social networking portion halt on March 16, 2013 was the first since it was forced to close.
The network has since asked the Supreme Court to block the NTC's cease-and-desist order.
