While it's true a cash reserve is there for emergencies, dipping into your cash reserves should never be plan A.
If you're in a financial crunch and you don't know how long it will land, you'll try and cut operating costs first. Dipping into your reserves should be you last resort if all else fails. It's better to try and operate at a lower cost instead of burning up your reserves until they're potentially depeted since they obviously have no idea how long this will last. I'm sure the WWE has an idea of how long they can operate on their reserves, but what if the current crisis extends beyond that? You have to prepare for the worst.
Yes, letting unessential employees go when they are losing profits to maintain your profit margins is harsh, but that's just a part of business.