During a conference call with WWE employees this afternoon, Vince McMahon has announced that cutbacks and furloughs are coming for the company's staff - and that includes the Superstars inside of the ring too.
Per a report from PWInsider, some staff and Superstars will be go on furlough leave while others will be let go from the company. Rather Surprisingly, all staff will learn their fate via text message.
PWInsider have had their finger on the pulse of the call, and have reported the following key points:
. McMahon just announced cutbacks and furloughs for WWE staff and the company overall, stating that these were hard decisions that reflect the current reality.
. McMahon stated the company would be cutting back on pay for Board Members and Executives.
. Plans to move WWE Headquarters out of Titan Tower to the new HQ in Stamford, CT have been delayed.
. McMahon also stated they would be cutting the talent roster and overall head count of employees. Some will go on furlough. Others will be let go from their responsibilities. Employees will receive texts about where they stand going forward.
WWE have also recently put out a press release clarifying what they're doing in the immediate future:
STAMFORD, Conn.--(BUSINESS WIRE)-- WWE (NYSE: WWE) today provided an update on measures taken by the Company in response to the current impact of COVID-19 on the organization.
Due to COVID-19 and current government mandated impacts on WWE and the media business generally, the Company went through an extensive evaluation of its operations over the past several weeks. This analysis resulted in the implementation of various short-term cost reductions and cash flow improvement actions including:
- Reducing executive and board member compensation;
- Decreasing operating expenses;
- Cutting talent expenses, third party staffing and consulting;
- Deferring spend on the build out of the Company’s new headquarters for at least six months.
Given the uncertainty of the situation, the Company also identified headcount reductions and made the decision to furlough a portion of its workforce effective immediately. The decision to furlough versus permanently reduce headcount reflects the fact that the Company currently believes the furlough will be temporary in nature.
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. Management continues to believe the fundamentals of the Company’s business remain strong and that WWE is well positioned to take full advantage of the changing media landscape and increasing value of live sports rights over the longer term.
The Company will provide further details when it reports its first quarter 2020 results next Thursday, April 23 after the close of the market.