On Wednesday, WWE revealed that numerous changes to the company will likely happen due to the economic impacts of the coronavirus pandemic. On a conference call on Wednesday, Vince McMahon let his employees know that there would be strict updates coming for the company and that cutbacks are being made. Not only will there be furloughs in WWE's offices, but superstars will be released as well.
The changes are not entirely unexpected, as numerous companies around the world have been dealing with the same thing. The wrestling world was a bit taken back, though, by the idea that some of the members of the talent roster will be included in those receiving their unconditional release.
Wrestling Inc. is reporting that McMahon said during the call that "some employees" would be furloughed, but didn't specify as to whom. McMahon said he is hoping this is only a temporary situation and that the employees will be able to return to WWE after the COVID-19 situation is resolved.
As of this writing, there is no timeline known for that measure to be taken.
Employees furloughed by WWE will receive text messages from the Human Resources Department sometime this afternoon.
McMahon said that any talent releases are going to be permanent, and those announcements are said to be coming today as well. The staff cuts likely won't be made public, but the superstar releases are typically given on WWE's official website.
WWE has been going through an "extensive evaluation" of its operation for the last few weeks, as WrestleZone is reporting. The results of that evaluation have led to the company making even more changes, which are seen as short-term cost reductions to help cash flow improvement during the pandemic.
WWE has been planning on moving its office employees from Titan Tower to a new location in Stamford, Connecticut. That move was to take place by early 2021, but these cutbacks have brought about a delay of at least six months.
During the call, McMahon said the pay of board members and executives would be temporarily reduced. All third-party consulting contracts are being cut as of this time and could come back after things return to normal.
The coronavirus pandemic has already greatly affected Vince McMahon's finances. Last week, the XFL laid off almost all of its employees and revealed an uncertain future. On Wednesday, the league filed for Chapter 11 bankruptcy after suspending all operations.