World Wrestling Entertainment Inc. said Thursday that it will slash 7% of its workforce after costs of ramping up its online-subscription service WWE Network helped put it into the red in the second quarter.

WWE reported a net loss of $14.5 million, compared with a net profit of $5.2 million a year earlier. The staff cuts, and other cost-cutting moves, would help boost operating income before depreciation and amortization by $30 million in 2015, WWE said. A company spokesman said the cuts, which will total around 50 to 60 people, will affect all business units.

WWE's launch of WWE Network in February made it one of the few entertainment companies with a presence in cable television to also sell a stand-alone online offering. WWE still has shows on television, such as "Raw" and "Smackdown" on channels owned by Comcast Corp.'s NBCUniversal, although in May WWE failed in a bid to win a big increase in the TV fees it receives from NBCU.

On Thursday WWE reported net additions of 33,000 subscribers for WWE Network since April, lifting total subscribers to 700,000. WWE has previously set a year-end target of one million subscribers and has noted that 1.3 million to 1.4 million subscribers would put it past a break-even point offsetting difficulties in pay-per-view.

WWE Network gives fans willing to pay $9.99 a month access to various programming, including from WWE's library, as well as the monthly specials previously available on pay-per-view on television.

WWE initially asked subscribers for a six-month commitment. With the six months coming to an end in August, Benchmark Company analyst Mike Hickey said there were concerns that WWE would see a "roll off" of subscribers from late August through October.

To perhaps stave off those who may not renew the subscription through the summer and early fall, the company will add additional methods of payment, including a commitment-free $19.99 monthly plan. On a call with analysts, WWE executives said they expected to see 4%-8% of subscribers churn off every month.

"For us the payment options are one way to continue learning, to see how people approach it," said George Barrios, chief strategy and financial officer. "The fact that we've gone from 0 to 700,000 paying subscribers, I feel really proud."

WWE shares spiked after the earnings report Thursday morning before leveling off, trading 3% up at $12.54 in afternoon trading on the New York Stock Exchange.

Write to Steven Perlberg at Steven.Perlberg@wsj.com

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