UPDATE: Significant changes have been made to TKO Group Holdings’ severance policy as of July 18, 2025.
It was reported earlier here on WrestlingHeadlines.com (see below) that a WWE/TKO revised severance package introduces new eligibility requirements and alters both pay and benefits for departing employees.
Fightful Select is reporting that the updated plan outlines two core components – severance pay and COBRA health insurance continuation. Eligible employees will receive health coverage through COBRA during their severance period, but must still pay the employee portion of the monthly premium to keep their insurance active.
Eligibility now requires a minimum of one year of continuous service. Severance pay has shifted from the previous standard of approximately one month per year of service to a reduced rate of two weeks per year of service.
Additionally, TKO has introduced new minimum and maximum severance periods based on position level:
Senior Vice Presidents (SVP):
Minimum: 16 weeks
Maximum: 52 weeks
Vice Presidents (VP):
Minimum: 8 weeks
Maximum: 36 weeks
Employees below VP level:
Minimum: 4 weeks
Maximum: 24 weeks
These changes mark a substantial reduction in severance potential, particularly for employees with shorter tenures.
The internal response has reportedly been negative, with many workers — especially those employed for fewer than five years — expressing frustration. Some believe the move may be a preemptive step ahead of potential layoffs, though that theory remains speculative and unsupported by concrete evidence.
ORIGINAL: WWE employees were notified this afternoon via an internal memo that a new severance policy has been implemented, effective immediately.
The previous policy — which granted one month of severance pay for each year of service — is no longer in effect. Moving forward, the company will follow the TKO Group’s severance structure, which provides two weeks of severance pay per year of employment.
Pwinsider is reporting that there are additional caps tied to an employee’s management level, though specific details have not been disclosed.
Understandably, the news has dealt a significant blow to employee morale, particularly as many staff members are now juggling responsibilities across WWE, UFC, and PBR — far beyond the single-brand focus they had prior to Vince McMahon’s sale of the company.
