WWE News - Company confirms staff reductions, furlough and cuts to talent expenses
- WWE have confirmed their reaction to the coronavirus pandemic
- Several measures have been put in place due to the current situation
The company have stated that they have identified headcount reductions and made the decision to furlough a portion of their workforce, effective immediately, due to the "uncertainty" of the situation. They also added that the use of furloughing as opposed to permanently reducing their headcount reflects the belief that the situation is temporary.
Other measures WWE have taken are noted as - reducing executive and board member compensation, decreasing operating expenses, cutting talent expenses, and third party staffing and consulting. WWE have also deferred spending on their move to a new headquarters for at least six months.
How much will WWE save?
WWE states that their reductions 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 company’s new headquarters.
The statement goes on to confirm that the company has "substantial financial resources" totalling approximately $0.5 billion - as both cash and debt capacity - to manage the challenges ahead.
WWE ends their statement by saying:
"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."
WWE will report its first quarter 2020 results next Thursday - April 23 - after the close of the market and have stated that more details will be released then.
Visit WWE Raw Results for results of Monday WWE RAWPublished 15 Apr 2020, 22:17 IST