WWE: Vince McMahon to fire 50 more employees

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Vince McMahon has been forced into making more tough decisions to save WWE from further financial losses.

Earlier this year it was announced that WWE would have to cut $20 million off its budget for 2014 in the wake of some disappointing financial figures.

That announcement coincided with the release of several wrestlers and one lead writer.
But this week it has been revealed that further cuts are still needed. According to the Wall Street Journal, WWE have announced that they need to reduce staff by 7% to improve their financial standing.

Massive loss

WWE's quarterly financial figures were released this week, and it's said that the decision to cut staff further is vital for the survival of the entertainment company.

WWE managed to accumulate a net loss of $14.5 million in the last quarter, which is compared to a net profit of $5.2 million in 2013.

Cost-cutting decisions are crucial for WWE's stability going forward. Wall Street Journal report that these moves "would help boost operating income before depreciation and amortization by $30 million in 2015."

According to WWE, a total of 50 to 60 people will be fired from the company, and it's been confirmed that these cutbacks will affect all parts of the entertainment business.

WWE Network problems

WWE's financial problems are in part down to the lack of success that the wrestling organisation has had with its subscription-based video streaming service.

WWE Network was supposed to be a service that takes WWE to the next level. Instead, it's has been a heavy burden on the company and a source of embarrassment for Vince McMahon.

The good news is that the network itself has increased its subscribers to 700,000, but this is still way short of the desired target of one million subscribers by the end of this year.

WWE has revealed before that they need 1.4 million subscribers to break even, but considering the wrestling company has only managed an increase of 33,000 since April, 1.4 million is still ambitious to say the least.

Related articles 

- WWE to cut 2014 budget by $20 million 
Vince McMahon's WWE Network push gets even more desperate

Firing has already begun 

Ricardo Rodriguez was the first staff member to be fired after WWE released their quarterly financial statement. It's highly likely more will follow in the coming weeks as WWE plan to balance the books more.

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