Bryan Alvarez of the Wrestling observer Newsletter reported that recent WWE talent cuts stem from the company needing to improve its financial metrics to appease investors ahead of a potential sale.
The cuts, impacting numerous performers and staff on November 3rd, are directly linked to WWE’s obligation to demonstrate profitability and growth to potential buyers.Alvarez explained on the November 3rd edition of Wrestling Observer Radio that the company is under pressure to show positive trends in key financial areas, including operating income and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). These metrics are crucial for attracting favorable offers during sale negotiations. WWE’s stock price rose following the declaration of the cuts, indicating investor confidence in the move.
The affected individuals include long-time performers like Sarah Logan, and various behind-the-scenes personnel. these reductions are part of a broader effort to streamline operations and reduce costs, aligning with the financial goals necessary for a successful sale process. WWE is currently exploring strategic alternatives, including a potential sale, as announced in April 2023. The company’s board of directors is evaluating all options to maximize shareholder value.
