Post by JTG on Apr 15, 2020 12:35:04 GMT -5
STAMFORD, Conn., April 15, 2020 – 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.
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.
So it seems that a portion of the roster will get shafted. And also, that's even more problematic, many WWE employees will go on furlough.
Talents Released:
Aiden English
Aleksandar Jaksic (NXT)
Curt Hawkins
Dan Matha (NXT)
Deonna Purrazzo (NXT)
Drake Maverick
EC3
Epico Colon
Eric Young
Erick Rowan
Josiah Williams (NXT)
Heath Slater
Karl Anderson
Kurt Angle
Lio Rush
Luke Gallows
Maria Kanellis
Mike Kanellis
MJ Jenkins (NXT)
No Way Jose
Primo Colon
Rusev
Sarah Logan
Zack Ryder
Agents/Trainers Released:
Ace Steel
Billy Kidman
Dave Finlay
Kendo Kashin
Lance Storm
Mike Rotunda
Pat Buck
Sarah Stock
Scott Armstrong
Serena Deeb
Shane Helms
Shawn Daivari
Announcers Released:
Jerry Soto
Referees Released:
Mike Chioda
Writers Released:
Andrea Listenberger
www.wwe.com/article/wwe-talent-releases-kurt-angle-drake-maverick-karl-anderson
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