WWE talent feels down in the dumps, but the company is still up?

Reports came in from all over the other day detailing more in the WWE release and furlough situation and the overall affect it is having on the company.

Firstly, as reported by PWInsider and Wrestling Inc, morale is down throughout the company. After “acclimating to the new new normal,” there was a sense of “survivor’s guilt.” It felt as if 40 percent of the company was just gone, and those still there felt awful given they were good friends with the names and faces cut from the company. And add to that, less employees means there is more workload on everyone, and that adds pressure to “get the work done.”

This goes for all parts of the company, not just the wrestlers, coaches and producers we’ve publicly been told about. Because of the COVID crisis and the inability to tour for house shows, the WWE Live Events division took a massive hit. WWE Digital was also hit hard, as well.

As for wrestling talent, while the main roster is reportedly safe for now, there are still more cuts to NXT expected. We’ve already seen Deonna Purrazzo, Aleksandar Jaksic and Dorian Mak as the first of in-ring talent cut, so those not regularly featured or firmly in the midcard and below are the most worried. No details on what that means for NXT UK, but assume they’ll be held to the same standard.

The low morale is only compounded when you add on the passing of the great Howard Finkel just yesterday. I believe Tegan Nox puts it best in a Tweet from Thursday.

Man, this week sucks! #RIPHowardFinkel 💔 https://t.co/sJnSHIMMZB

— Tegan Nox 🏴󠁧󠁢󠁷󠁬󠁳󠁿 (@TeganNoxWWE_) April 16, 2020

But not all hope is lost!

While it is tragic to have lost a legend like Fink, and to know a large swath of talent is left in limbo, details have emerged about those furloughed. Remember that being on furlough is not the same as being fired. Wikipedia defines a furlough as “a temporary leave of employees due to special needs of a company or employer, which may be due to economic conditions at the specific employer or in the economy as a whole.” Key word there: temporary.

Wrestling Inc. also reports details on what WWE is doing for their furloughed employees.

Wrestling Inc. has learned that employees who were furloughed received an information packet which stated that they were furloughed because of the “current level of work available as a result of COVID-19.” The pandemic was referred to “an unforeseen circumstance, akin to a natural disaster.” While Wednesday was the last official work day, they will remain on payroll until this Saturday, when the furlough officially begins.

The furlough end date is July 1, 2020, although it was specified that it was subject to extension “given the current situation and ongoing uncertainties.” It was noted that while there is not a definitive end date, the expectation is that it will last fewer than six months, although WWE reserves the right to extend or terminate the furlough period at their discretion. It was stated that they plan to keep employees informed of decisions made during that time. While they hope that the furloughs will be sufficient, it was noted that layoffs might be necessary.

WWE will be covering health insurance contributions during the furlough period for employees enrolled in the WWE health plan, and they will retain their seniority with the company. WWE noted that furloughed employees will not be receiving a paycheck, however they may be eligible for unemployment benefits as well as the Federal Coronavirus Aid, Relief and Economic Security (CARES) Act, which provides additional unemployment insurance of $600 per week.

Wrestling Inc. does not this may not be the same for everyone, but anything is better than nothing.

And that’s just the producers and non-wrestlers. Details have come out that the NXT talents cut are under different non-competes than main roster (Raw and SmackDown) wrestlers. As reported by THE Wrestling Observer and his newsletter, NXT talent non-competes are only 30 days as opposed to the standard 90. That means by May 15, they can sign with other promotions, though it might be a moot point with almost no other companies able to operate right now.

Here’s the kicker.

As also reported by Wrestling Observer Newsletter, WWE is saving a LOT of money. Dave Meltzer has stated, and clarified, on his Twitter that the WWE will save $703 THOUSAND A MONTH with the cuts from Wednesday. Doing the math, and assuming none of the names cut ever come back to the WWE, that’s at least $5.6 MILLION this year. Meltzer notes the $4 million figure floating around was only if you factored in ALL cuts, including expenses, in regards to the WWE moving into their new headquarters in Stamford, CT. However, that move has been delayed by at least six months given COVID concerns.

But it was in the most recent episode of Wrestling Observer Radio that Meltzer noted other financial details. Even if the WWE doesn’t run another Saudi Arabia special this year, doesn’t run another house show this year, doesn’t make any more money off licensing deals, the company is still on track to make $1 BILLION in 2020. The WWE will still pass that threshold and make the most money they’ve ever made in a single year.  This is all just potential, but also down from original projections before COVID. The figure of a billion comes from the 470 million in domestic television, then the international television, licensing deals, paid WWE Network subscriptions, and everything else you can think of that WWE does.

We shouldn’t make this into something of a “Boo! Big corporate company is bad!” even though it is a lot like that. It’s a matter of perspective. The WWE wasn’t going to fall that hard yet they let go of wrestlers to stay near a certain margin. However, and as I said before, if WWE is going to be this strong coming out of the crisis, we can only hope they do bring back the talent, if there are any still willing to return.