TKO recently introduced a new severance policy for WWE employees and now WWE’s internal reaction to the new policy has been revealed.
According to Fightful Select, the reaction to the changes in TKO’s severance plan was “one of absolute disgust.” Many employees who have been with the company for less than five years were especially frustrated. Some staff members speculated that TKO might be preparing for possible layoffs, but this was only speculation and not based on confirmed information.
“The reaction (to the changes to TKO’s severance plan) within TKO was one of disgust, with many of the employees of less than five years frustrated. There was speculation among employees that believed this was TKO getting ahead of potential cuts. However, that was just speculation and not something rooted in direct evidence.”
As reported earlier, WWE has ended its previous severance package, which gave employees one month of severance pay for every year they worked. From now on, the company will follow TKO Group’s policy, offering only two weeks of severance pay per year of employment. There are also pay limits based on an employee’s management level, though the exact numbers haven’t been shared.
The decision comes at a time when both WWE and UFC are going through major structural changes under the TKO umbrella. While cost-cutting is a common part of corporate restructuring, many employees are now worried that the new severance policy could be a sign of more job cuts on the horizon.
As WWE continues to change under TKO’s leadership, employee morale has obviously taken a big hit. So we’ll have to wait and see if there will be more changes happening this year.
Do you think TKO’s new severance policy is a warning sign of looming layoffs, or just part of standard corporate restructuring? Sound off in the comments.
