WWE today announced that 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 which resulted in the implementation of various short-term cost reductions and cash flow improvement actions.
These cost-cutting measures include reducing executive and board member compensation, decreasing operating expenses, cutting talent expenses, third party staffing and consulting, and deferring spend on the build out of the 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 statement said.
The reduction of employee compensation and headcount will 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 new headquarters. WWE said they have approximately half a billion dollars in financial resources to manage the challenges ahead.
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