Linda McMahon’s WWE “Profit Improvement Plan” Resurfaces
WWE is on the verge of a takeover by Endeavor that values the company at just over $9 billion but in the mid-nineties things were bleak, so much so that Linda McMahon found inventive ways to slash costs.
The mid-nineties was one of the darker times in WWE history with Vince McMahon’s name dragged through the mud as a result of the steroid trial, Hulkamania limping to an end, and WCW beginning its rise to become the number one wrestling promotion in the world – if only for a short time.
Stories have long been told of WWE taking the water coolers out of Titan Towers to save money but according to a “profit improvement plan” written by then-CEO Linda McMahon, it appears that the water coolers were a way of saving money.
The plan has resurfaced courtesy of a former WWE staff photographer Tom Buchanan and it includes radical proposals such as charging employees for long-distance calls and cutting security from the building:
“Over the last few weeks we have had many meetings and discussions about our profit improvement plan, and we have received many good suggestions which we will continue to evaluate.
However, the following suggestions we are going to implement immediately:
long distance Effective today everyone will be responsible for all personal telephone calls. At the end of each month you will receive a call all long distance calls made from your extension. Please review it, and send your check made payable to Titan Sports to accounting.
2. Crystal Rock Water
We will discontinue the purchase of bottled water at Titan Tower and at the Distribution Center when the water supply we have in house is depleted. Over the next few weeks we will install drinking fountains at TV and phase bottled water at that facility also.
We have attempted to change the service and at least break even, but we have been unsuccessful. As of Monday, we will discontinue our, cafeteria service. The lunch room will be open and soon we will provide more vending machines for your use.
We will eliminate the security at Titan Tower and the TV facility effective at the end of today. A receptionist will be at the B level lobby and at TV’s lobby to greet our guests.
5. Federal Express
We have seen a dramatic reduction in Federal Express, but there is still room to improve. All requests must absolutely be necessary.
6. Spending Authority
Beginning today, I am instituting a radical new procedure for expenditure approvals. A table of authority which indicates who is authorized to spend the company’s funds will be circulated to everyone.
In the past, Department heads were permitted to sign contracts, purchase inventory, and commit expenditure dollars without senior management approval. All such items and all monies to be spent, regardless of the amount (except as indicated on the attached), must be approved by Doug Sages or myself. Check requests and/or a purchase order must be completed. This process will retined as we proceed, but I am convinced that we will be better able to harness our spending with this procedure.
7. Kodak Copy Machines
We have evaluated our usage and found that a number of machines are significantly under utilized. As such, we will be eliminating some of machines in the near future. That will mean that the machine locations will be less convenient for some of us.
8. Insurance Benefits
One idea that continually surfaced in our meetings to save costs
would be to have employees contribute to the cost of our medical insurance. Effective December 1, we shall change our policy to reflect those costs. During the following weeks, we shall provide you with various coverage options.
9. Temporary Personnel
We shall eliminate temporary personnel, but under extreme situations will be evaluated by Lisa Wolf. Full time personnel will need to be allocated on priority basis.
10. Free Lancers
Except for remote television shoots, the use of freelancers will eliminated. Again, personnel will be cross trained so that deparcments can work to assist one anocher when necessary.
The Company will no longer pay O.T. for anyone who works through their lunch hour. All O.T. costs will be re-evaluated.
Our goal is to discontinue paper memos and to use E-Mail. The E-Mail
system is very convenient and efficient. This is only a start. Please continue with your ideas. Work efficiently, plan and don’t be wasteful. I expect that there will be some glitches, but only temporarily.
While things might be looking a lot better for WWE in modern times, company CEO Nick Khan warned that “aggressive” cuts are looming again due to the impending takeover as Endeavor are likely to streamline staffing given that WWE will be merged with UFC.