WWE Furloughs Employees, Releases Several Wrestlers

STAMFORD, CT — Stamford-based World Wrestling Entertainment (WWE) provided an update Wednesday on measures taken by the company in response to the impact of the new coronavirus on the organization, including furloughing a number of employees and releasing several wrestlers.

Among various other "short-term cost reductions," the company said it furloughed "a portion of its workforce" effective immediately. A specific number of affected employees was not provided.

In a lengthy statement released Wednesday on the company's website, the WWE said it had gone through "an extensive evaluation of its operations" over the past few weeks in light of the virus, as well as "current government-mandated impacts" on the company.

"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 said in a statement.

Other cost-saving measures implemented by the company include reducing executive and board member compensation, decreasing operating expenses and cutting talent, expenses, third-party staffing and consulting. The company also said it will defer spending on the build out of the company's new headquarters for at least six months.

Additionally, the WWE announced on its website several wrestlers and on-screen talent will be released, including Drake Maverick (James Curtin), Kurt Angle, Curt Hawkins (Brian Myers), Karl Anderson (Chad Allegra), Luke Gallows (Drew Hankinson), Eric Young (Jeremy Fritz) and Lio Rush (Lionel Green), among others. The full list can be found here.

After the news was announced, Drake Maverick tweeted an emotional video. He said he will compete in the NXT Cruiserweight Championship tournament, however they will likely be the last matches he ever has.

"As of today, I have been released from my WWE contract," Maverick said in the video. "There's a lot of people I'm not going to get a chance to say goodbye to that I really loved and I really cared about."

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The company said they had come to terms on each superstar's release and wished them "all the best in their future endeavors."

The company said the reductions of employee compensation and headcount would "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.

"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," the company said. "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 results on April 23, officials said.

The WWE recently made national headlines when Florida state officials declared the WWE an "essential service," according to the New York Times. A WWE spokesman also told the paper the company takes precautions to protect the health of its staff members and other workers.