Grappling to improve margins amid the economic slowdown, integrated media group World Wrestling Entertainment will slash 10 per cent of its staff which will result in annual savings to the tune of 8 million dollars (about Rs 40 crore).
Grappling to improve margins amid the economic slowdown, integrated media group World Wrestling Entertainment will slash 10 per cent of its staff which will result in annual savings to the tune of 8 million dollars (about Rs 40 crore).
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The planned headcount reduction would be "across all areas of its global operations". "This reduction will result in annual savings of approximately eight million dollars in compensation and benefit costs.
Additionally, the company will incur an approximate three million dollars one-time restructuring charge in the first quarter of 2009," WWE noted in a recent statement.
However, the company did not reveal the exact number of job losses.
Going by its annual report for 2007, the firm had 570 employees as on December 2007.
"As on December 2007, we had 570 employees. This headcount excludes our Superstars, who are independent contractors. Our in-house production staff is supplemented with contract personnel for our television production," the annual report said.
The New York Stock Exchange-listed WWE is an integrated media and entertainment company. It reports operating revenues in four segments, live and televised entertainment, consumer products, digital media and WWE Studios.
According to the recent statement, the staff reduction is part of initiatives to implement stronger cost controls, increase its earnings and marginal. Further, these moves would bring down its cost base by 20 million dollars this year
"The staff reduction is consistent with the company's previous commitment to implement stronger cost controls, increase earnings and margins, and reduce its cost base by 20 million dollars in 2009," it said.
Moreover, WWE has completed a comprehensive evaluation of its operating and capital expenditures and "has identified additional efficiencies".
"These efficiencies will help position the company for the long term, by placing it in a stronger, more flexible position," WWE's chief executive officer Linda McMahon said.
"With these actions, we believe we can execute our key strategic initiatives, including our digital strategy and international expansion, in a more profitable manner," McMahon noted.
Meanwhile, the worsening economic conditions in America has a taken a toll on the earnings of WWE.
The company headquartered in Stamford, Connecticut, had profits of 5.3 million dollars in the third quarter of 2008, a fall of 38 per cent compared to the year-ago period.
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