It was reported a few hours ago that Vince McMahon will be having a major conference call with all the WWE employees, and the email to the employees stated that an important company update will be taking place over the call.
The meeting was wrapped up in around five minutes, and the Chairman made some major announcements with huge implications for the company’s future. According to Mike Johnson of PWInsider, several big changes took place in the meeting. Some of these include:
- Cutbacks and leave of absences for WWE staff and the company overall.
- Cutbacks on pay for Board Members and Executives.
- The plan to move WWE Headquarters from Titan Tower to the new HQ in Stamford, CT has been delayed.
- Cutbacks on talent roster and overall employees. Some will go on a leave of absence. Employees will reportedly receive texts about where they stand going forward.
These will result in a major spring-cleaning for WWE, and it is likely that a lot of the lower-card employees get the boot. Even some of the other more relevant names could be put out on a furlough, which WWE believes is temporary. The furloughed employees will return once the situation turns normal.
Shortly after the meeting, WWE put forward a press release, in which they detailed their plans to save on expenditure due to the pandemic, and will save an estimated $4 million every month after the changes are implemented, along with $140 million in savings due to the halt in the construction of the new headquarters in Stamford.
“The Company’s reductions of employee compensation and headcount result in an estimated monthly savings of $4 million along with cash flow improvement of $140 million primarily from the deferral in spending on the Company’s new headquarters. Additionally, the Company has substantial financial resources, both available cash and debt capacity, which currently total approximately $0.5 billion, to manage the challenges ahead.”
WWE has faced tremendous loss in the last few weeks, similar to almost every organization in the world, due to the cancellation of several events. WWE’s revenue from live-events and ticket sales for their shows is completely gone for a few months at least, and their biggest event, WrestleMania 36, took place in front of zero fans.