WWE Stars Kofi Kingston and Xavier Woods Exit in Historic Departure After Contract Restructuring

In the aftermath of WrestleMania 42, WWE followed its annual tradition of mass layoffs. While many cuts caught the locker room off guard, the most surprising development wasn’t who was released—it was who chose to walk away. The New Day’s Kofi Kingston and Xavier Woods, two Black tag-team legends, mutually agreed to leave the company on their own terms.

Even during the company’s most challenging periods, The New Day remained a unifying force. Fans and critics alike agreed: they were the redeeming quality of WWE. Their journey—from beloved heels to the most decorated tag team in company history—cemented their legacy. When Kingston defeated Daniel Bryan at WrestleMania 35 to become the first African-born WWE Champion after 17 years in the company, the moment was met with widespread emotional acclaim, marking the peak of KofiMania.

Fans long speculated about a potential dream match between The New Day and AEW’s Kenny Omega and The Young Bucks, but such a crossover always felt like a fantasy. The New Day were quintessential WWE lifers—the kind of talent assumed to retire as a trio decades from now. That’s why their mutual decision to part ways with the company sent shockwaves through the wrestling world.

WWE Layoffs: A History of Controversy

Mass releases are nothing new for WWE. Wrestlers who had been sidelined due to injury or were already on their way out were often the first to go. However, under the leadership of Vince McMahon in 2021, the company expanded its layoffs to include established performers who were still appearing on TV weekly, as well as newly signed talent—before they could gain momentum.

While layoffs have become as routine as the changing seasons, The New Day’s departure stands out for one key reason: they made the decision with WWE, not against it. Reports indicate they were asked to “restructure their contracts”, a move that followed broader demands for pay reductions across the roster.

Pay Cuts and Contract Restructuring: The Behind-the-Scenes Struggle

According to PWInsider, a majority of WWE superstars were reportedly asked to accept a 50 percent pay cut, and many complied. Dave Meltzer of Wrestling Observer Newsletter, often compared to Jason Schreier in wrestling journalism, corroborated the report with a critical clarification: the wrestlers asked to take cuts were not among WWE’s top-tier performers.

Meltzer stated:

“There have been recent raises and there have been people asked to take cuts. I think it’s very clear who they see as the top people and none of them have been asked to take a cut.”

Fightful further reported that several WWE superstars were given only two days to decide whether to accept the pay cut to remain under contract. The urgency and scale of these demands underscore the financial and operational pressures facing the company.

A Farewell to WWE: Kingston and Woods Reflect on Their Legacy

In a heartfelt statement, Kofi Kingston reflected on his 16-year tenure with WWE, saying:

“For the past 16 years, WWE has been my home. It’s where I grew up, found myself, failed, learned, and got to live out things the younger version of me could only dream about.”

Their departure marks a pivotal moment in WWE history, highlighting the growing divide between company priorities and the expectations of its most loyal performers. As The New Day steps away, the wrestling world watches closely to see what comes next—for them and for the company they helped define.