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TNA planning to implement major budget cutbacks immediately

Dave Meltzer and Bryan Alvarez on their May 16th Wrestling Observer Radio show broke the news that TNA is implementing major budget cutbacks starting this week.  It sounds like they are looking to reduce the size of their talent roster, while also shooting four weeks of television in just three days.  This could very well lead to creative chaos, as the company currently has very little long term planning, because Hulk Hogan and Eric Bischoff insist on lots of script changes on the day of a TV taping, and any changes in the first show to be taped will require last minute changes to all three of the following shows.

These budget cutbacks were predictable.  As I said in my post on April 28th about Tara being unhappy with pay causing her to leave TNA: 

I can see Tara rightly feeling she deserves a modest pay rise after the company has massively overspent to hire name talent in the last six months that by and large haven't delivered in the ratings.  But unfortunately when a wrestling company burns through their cash reserves on an ill advised Monday night experiment, it's always the undercard talent that suffers.  Tara's not the first victim (see the recent firing of Christopher Daniels) and she surely won't be the last.

Will I be proved correct or will Dixie Carter in her moment of truth have the bottle to ask the overpaid and underpeforming name talent to take a pay cut or simply get rid of some of them?  We'll see in the upcoming days and weeks to come.