Report: Details on Vince McMahon's Conference Call With WWE Staff Announcing Cutbacks
Prior to WWE's putting out its press release announcing cutbacks and possible furloughs, Vince [...]
Prior to WWE's putting out its press release announcing cutbacks and possible furloughs, Vince McMahon reportedly held a brief conference call with all members of WWE's staff and talent roster on Wednesday morning. Details from the call, according to Mike Johnson at PWInsider, echo what WWE announced in its press release, though there were some additional details on wrestlers possibly being let go.
"McMahon also stated they would be cutting the talent roster and overall head count of employees. Some will go on furlough," Johnson wrote. "Others will be let go from their responsibilities. Employees will receive texts about where they stand going forward."
No talent firings or furloughs have been announced as of this writing.
"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," WWE's press release explained. "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."
The announcement comes just days after Florida state officials had deemed WWE an "essential business," allowing them to continue to produce live television from the WWE Performance Center despite the state's "stay at home" order.
"I think initially there was a review that was done and they were not initially deemed an essential business. With some conversation with the Governor's office regarding the Governor's order, they were deemed an essential business. Therefore they were allowed to remain open," Orange County (Florida) Mayor Jerry Demings explained during a press conference earlier in the week
