Kofi Kingston and Xavier Woods Part Ways With WWE Following TKO Contract Restructuring Dispute

Posted : 03 May 2026

The professional wrestling landscape was fundamentally shifted this weekend following the shocking departure of The New Day members Kofi Kingston and Xavier Woods from WWE. The veteran duo reportedly reached a mutual agreement to leave the company on Monday after a breakdown in contract negotiations. This exit brings a sudden end to one of the most decorated and successful tag teams in sports entertainment history after more than a decade of partnership.

The root of the departure lies in a directive from TKO Group Holdings, WWE’s parent corporation, to significantly reduce the company's payroll expenses. Kingston and Woods had both signed lucrative five-year contract extensions in late 2025 which were intended to keep them with the organization until 2030. Reports indicate that the duo was earning seven-figure annual salaries, which TKO management sought to reduce through a mandatory restructuring of their existing deals.

Internal sources suggest that the locker room is in a state of absolute shock regarding the news. Many peers viewed Kingston, who joined the main roster in 2008, as a "WWE lifer" who would eventually retire within the company. However, the refusal of both men to accept a pay cut led to the decision to seek their releases. This move highlights a new corporate climate where veteran status no longer guarantees contract security against budget-cutting measures.

As they move forward, the pair will face significant branding changes due to WWE’s ownership of intellectual property. While Kingston can use his first name as it is his legal name, he is expected to drop "Kingston" for future appearances. Xavier Woods will likely revert to his established "Austin Creed" persona, a name he has used for his gaming and media projects. They are also legally barred from using "The New Day" name in any rival wrestling promotions.

Rival promotion All Elite Wrestling (AEW) has already shown substantial interest in the pair, with several top stars reportedly urging management to sign them immediately. Both wrestlers must first complete a standard 90-day non-compete clause, which expires in late July. Until then, the wrestling community remains focused on the ripple effects of this release wave, which also saw the departures of Tonga Loa and JC Mateo this same week.

Kofi Kingston and Xavier Woods Part Ways With WWE Following TKO Contract Restructuring Dispute

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