A significant change to WWE’s severance policy has caused widespread disgust and anxiety among employees, sparking fears that the company may be preparing for a new round of layoffs. The reaction follows an internal memo sent on July 18, 2025, which outlined the immediate termination of WWE’s long-standing severance structure.
Under the old system, departing employees received one month of pay for each year of service. The new policy, which aligns with the structure of parent company TKO Group Holdings, cuts that benefit in half, offering only two weeks of severance pay per year of employment. Additionally, the new plan introduces caps based on an employee’s management level. Senior Vice Presidents now have a severance window of 16 to 52 weeks, while Vice Presidents are capped at 8 to 36 weeks. Staff below the VP level have a minimum of four weeks and a maximum of 24.
According to a report from Fightful Select, the internal response to the changes has been intensely negative, particularly among employees with less than five years at the company.
“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.”
The policy shift is one of the latest structural changes to result from the ongoing integration of WWE and UFC under the TKO banner. With cost-saving being a primary goal for the new corporate entity, many employees reportedly see the reduction in severance pay as a strategic move to minimize future costs associated with potential staff reductions.
Despite the speculation and damaged morale, there have been no confirmed talent or departmental layoffs in the 24 hours following the announcement. However, the move is widely seen as a preemptive measure as TKO continues to streamline its operations.