Real Reason Behind Last Night's Mass WWE Releases
WWE was already en route to a record-breaking financial year before the cuts.
Dozens of wrestlers, producers, and other WWE staff were either released or furloughed last night, marking Black Wednesday one of the grimmest days in company history and sparking immediate discussion on why, exactly, the promotion had let these people go.
That the cuts came so soon after WWE had been deemed "essential media" in Florida raised eyebrows. More significantly, the company themselves had confirmed a $500 million reserve fund (comprised of cash and debt capacity) to "manage the challenges ahead."
On top of all this, Brandon Thurston, the foremost independent WWE financial expert, has forecasted a record-breaking profit year for WWE despite the loss in revenue due to the ongoing global situation.
It's clear, then, that these releases were made to maintain a profit margin, not ensure profitability:-
Dave Meltzer reached the same conclusion:-
Estimates on how much money WWE has saved by making these cuts range from $703,000 to $4 million a month.
Accurately analysing this situation requires clear, critical thinking, which Thurston has applied through an objective look at the numbers. His results mean WWE can't be let off the hook here. A difficult, unprecedented time to be working through, absolutely, but the releases were a choice, not a necessity.