Recent reports indicate that TKO, the parent company of WWE, has approached several wrestlers about reducing their salaries. The initial story, published by PWInsider on May 4, 2026, detailed how a “pretty majorly pushed talent” was asked to accept a 50% pay cut shortly before Kofi Kingston and Xavier Woods departed the company. While the name of this wrestler and specific details remain unconfirmed, it was reported that they agreed to the reduction.
WWE Stars Face Salary Slash from TKO
Kofi Kingston and Xavier Woods, long-standing members of The New Day, concluded their WWE tenures after declining to renegotiate contracts that had been finalized the previous year. Their departure was marked by their inclusion in the Alumni section without a public farewell. Both wrestlers shared statements on Monday, with Kingston describing the parting as mutual following discussions, and Woods terming it a business decision after 16 years with the company.
Further backing these claims, Sean Ross Sapp of Fightful confirmed on X that “a number of people were asked to take pay cuts,” though he provided no specific figures or confirmation of acceptances. The Wrestling Observer also corroborated the 50% pay cut story, characterizing the affected talent as mid-card performers rather than top-tier stars, some of whom had recently secured raises elsewhere.
These reported requests for salary reductions come in the wake of WrestleMania 42, which faced criticism for its lengthy duration and excessive commercial breaks. Prior to this event, WWE had released over 20 talents, including notable names like Wyatt Sicks, Kairi Sane, Zelina Vega, and the Motor City Machine Guns. TKO’s strategy appears to be focused on cost-cutting measures ahead of financial reporting, potentially by substituting experienced wrestlers with talent from NXT.
WWE has maintained its customary silence regarding these rumors, as is typical with contract-related matters. Mike Johnson interpreted these actions as TKO treating talent as mere assets within a profit-driven organization, a perspective that has been voiced since the merger with Endeavor. On platforms like Reddit and X, fans have expressed shock and have been actively speculating about the identities of the wrestlers involved and the possibility of unionization talks.
TKO’s recent actions align with a broader pattern observed since the company’s sale in 2023: an increase in executive compensation coinciding with significant shifts in talent roster. Kingston and Woods are now free to pursue opportunities with promotions such as AEW or wrestling in Japan. If more wrestlers agree to pay cuts, it could set a precedent, while refusals may lead to further departures, similar to the New Day situation.
TKO reported robust financial results for 2025. The company achieved a full-year revenue of $4.735 billion, with a net income of $546.2 million and adjusted EBITDA reaching $1.585 billion. WWE alone generated $1.709 billion in revenue and $896.5 million in adjusted EBITDA during the same period. Despite these strong figures, overall talent compensation remains relatively low. Top stars like Roman Reigns reportedly earn around $5 million annually, while mid-card wrestlers typically receive between $100,000 and $500,000, a figure spread across a roster of over 200 individuals. Direct operating costs, including talent expenses, account for approximately 40-50% of WWE’s revenue. This leaves financial room for cost reductions, particularly as the company has returned $1.3 billion to shareholders.
The CEO of TKO, Ari Emanuel, received a significant compensation package in 2025, amounting to $67 million.