The merger of WWE and UFC into the new TKO Holdings Group under the parent company Endeavor has kicked off with a rocky start in the company’s offices. Employees were informed to work from home, and as feared, a wave of massive layoffs has hit the organization.
Jamie Horowitz, who previously held the position of Executive Vice President of Development and Digital at WWE, has been among the first casualties of these layoffs. Additionally, Catherine Newman, the Head of Marketing, was also terminated from her position, followed by Amanda Bloom and likely more to come.
According to PWInisider, this day had been anxiously awaited by WWE employees, who were on edge, waiting to see if they would receive notifications for Zoom calls with the company, which would ultimately mean the end of their employment with WWE. The physical separation of employees due to remote work only added to the overall unease and uncertainty within the company.
Everyone we’ve spoken to is pretty much on pins and needles waiting to see if they receive word they need to jump on a Zoom call with the company, realizing that if they receive one, their time with the company has to be done. The fact everyone was separated has added to the sense of unease as well according to a few we’ve spoken with.
The merger between UFC and WWE was officially concluded with the establishment of the TKO Group under the parent company Endeavor. In light of this merger, a stringent cost-cutting strategy has been put in motion, and some high-ranking WWE executives have already parted ways with the company. Endeavor’s CEO, Ari Emanuel, revealed on CNBC their intent to reduce WWE’s expenses by a significant margin, ranging from $50 million to $100 million, in order to boost profitability.
This approach echoes Endeavor’s previous acquisition of UFC in 2016 when they implemented similar cost-cutting measures, mainly affecting administrative staff but having a limited impact on talent. Notably, the focus was primarily on curtailing expenses related to wrestlers and talent.
It is anticipated that, in line with the UFC scenario, wrestler compensation may see slower growth compared to revenue and profits. However, it’s crucial to note that Endeavor is likely to maintain a hands-off approach to the actual management of the wrestling product, similar to how they handled UFC. This suggests that significant alterations to WWE’s television product are not expected, and it is unlikely that their television deals will be bundled in any significant way at this time.
