While Endeavor buying the WWE looks like it’ll be a good thing long term, there are going to be some rough patches ahead as the companies merge.
As is usual when one company purchases another, the staff and talent already there are evaluated and often let go due to the new company having their own people to fill those positions.
WWE Planning Releases as Aggressive Spending Cuts Loom
That appears to be what’s in the near future for WWE employees, but it may also extend to the onscreen talent as Endeavor will want to ensure they’re getting a lean and mean addition to their growing combat sports empire.
The current belief, thanks to Nick Kahn, is a conservative estimate of $50 million being cut from the WWE.
Trimming down
WWE CEO Nick Kahn appeared on LightShed Live and offered some insight into the estimated cost of the upcoming cuts.
“If you look at what Endeavor was able to take out, cost-wise, from UFC in 2016 or shortly after that deal was done, we have the same expectation here. We think 50 (million) is a really conservative number. We have integration teams now, we’re going to get those in shape, I think we’ll have a better sense of it in a month or two. We’re going to be pretty aggressive with them to make sure that, for our shareholders and for our company, our organization is as lean and mean as possible, and we’re going to rely on the Endeavor flywheel to make up the rest.”
As we mentioned above, this isn’t surprising given it’s standard operating procedure when new management comes in.
Endeavor’s COO Mark Shapiro said after Endeavor purchases the WWE they employee layoffs will happen since Endeavor has people in departments that can do the job of certain WWE compartments.
This doesn’t mean people will be laid off for the simple fact of laying them off as they’ll probably be given the chance or option to move into another department or take a pay cut to remain.
It’s definitely going to be a nervous time for WWE employees until things are settled, and there’s a chance some of those cuts could come in the talent pool as well.
This is going to be a curious endeavor if that happens as Triple H has brought back many that Vince McMahon previously released, and so far few of them have had the impact that was expected from them.
Things are going to be interesting in the WWE in the coming months, and we wish all of their employees the best going forward whether they stay with the company or move onto other endeavors.
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