TKO tasked WWE with cutting payroll costs by millions of dollars

WWE has carried out an aggressive process of salary cuts that has resulted in more than twenty talents being released from the company, some of them after refusing to lower their salary. Others, however, would have accepted a lower salary in exchange for continuing to work for the company. This is a controversial decision that has generated a great deal of negative criticism in the professional wrestling business, and it is said to come directly from TKO itself, as revealed in a recent report by Fightful Select. 

"We have been informed that WWE was tasked with cutting 'millions' in payroll costs over the last month or so, and cuts were made to make it happen. This was met with strong criticism within the industry, as TKO executives' salary packages were revealed at the same time as the company's stocks reached record levels. Most people we spoke to in the industry know that the layoffs are part of WWE's future plans, but beyond that, asking talent to accept seven-figure salary cuts in many cases was heavily criticized and ridiculed," the outlet wrote.

"We spoke with some people within the talent world and agents who pointed out that this round of cuts and salary reductions will likely lead to significant changes in how talent negotiates contracts with TKO and WWE in the future, highlighting that there is very little confidence that the life-changing million-dollar contracts for many wrestlers will remain in effect for their entire duration."

"Sean Ross Sapp of Fightful Select was told that several wrestlers in recent years were approached during international tours to offer them new contracts, in some cases much earlier than expected. Some interpreted this as an attempt to get talent to sign before their representatives could review the terms, although that was more of an opinion than a confirmed fact. However, on the day of the mass layoffs, WWE approached numerous talents and asked them to accept salary cuts to remain with the company. According to our information, several of them were given only two days to make the decision."

"Austin Creed and Kofi Kingston of New Day quickly decided they would rather leave the company. Despite the offer of a pay cut, the duo left millions of dollars on the table for the next four years. In a similar situation, when Killer Kross received his contract offer last year, he claimed he was only given one day to decide."

"We have not found confirmation of rumors that Xavier Woods could return with a digital-exclusive contract, as that would prevent him from working for AEW and, in practice, cost him millions of dollars in the coming years. As expected, numerous names have internally pushed for New Day to be hired by All Elite Wrestling."

"This led to another point of frustration among talent: New Day, Santos Escobar, and others had signed new contracts with WWE in the last year, some without even negotiating with All Elite Wrestling or other companies. Now, with WWE cutting them and reducing their salaries, their bargaining power is diminished. Several representatives pointed out that it wasn't even smart from a competitive standpoint, as one might think WWE would want AEW to have to spend more money on talent," Fightful wrote.

"No specific names were provided to Fightful about who accepted salary cuts, but the percentages varied from what had been reported. For those wondering why it was easy to know that New Day received offers of salary cuts compared to who actually accepted them, the fact that WWE moved them to the alumni section made it much easier to learn those stories. We have been told that several long-tenured veterans, including some recovering from injuries, were asked."

"A WWE source had been quoted by another outlet stating they were upset because WWE did not publicly acknowledge New Day's contributions. Another WWE source noted that praise was communicated privately, and a joint statement announcing the departure was expected to be issued, although it is unknown why it ultimately did not happen," the report concluded.