World Wrestling Entertainment, Inc. (NYSE:WWE) shares rallied more than 4% on Thursday morning after the company announced an aggressive round of talent layoffs and furloughs.

WWE announced a string of layoffs as part of its coronavirus-driven budget cuts, including at least 40 performers and.or producers that have reportedly been let go or furloughed.

Cutting Costs

WWE announced its cost-cutting measures will include reducing executive compensation, cutting operational expenses, reducing payrolls, and deferring spending on the company’s new headquarters for at least six months.

“The Company’s reductions of employee compensation and headcount result in an estimated monthly savings of $4 million along with cash flow improvement of $140 million primarily from the deferral in spending on the Company’s new headquarters,” WWE said in a statement.

Dave Meltzer of the Wrestling Observer Newsletter tweeted on Thursday that the costs saved by the talent cuts aren’t making much of an impact on WWE’s bottom line. 

“The talent cuts will save them about $703,000 per month, $4 million includes all expenses cut including expenses of moving into a new office,” Meltzer wrote.

See Also: With Live Sports On Hold, ESPN And Fox Load Up On Pro Wrestling

Bullish sentiment among StockTwits messages mentioning WWE was at 27.3% on Tuesday, down from its 2020 high of 96% on Feb. 26.

Unemployment Relief

Among the names either confirmed or widely reported to have been released are Miroslav Barnyashev (“Rusev”), Joseph Ruud (“Rowen”), Chad Allegra (“Karl Anderson”), Drew Hankinson (“Luke Gallows”), as well as non-wrestlers like legends Kurt Angle and longtime referee Mike Chioda.

WWE performers are technically classified as independent contractors, not employees of the company. That distinction has historically prevented laid off wrestlers from getting unemployment benefits, but the recent $2 trillion U.S. stimulus package has a provision providing unemployment compensation for laid off contractors for up to 10 months.

Benzinga’s Take

For now, WWE investors are hoping the spending cuts can at least partially offset lost revenue from the company’s canceled live events. WWE is still producing weekly TV shows in its studios in Orlando after the state of Florida deemed it an “essential business,” but it has canceled all live events through at least the end of April.

Do you agree with this take? Email [email protected] with your thoughts.

Photo credit: JBZA2003, Wikimedia