DraftKings Cuts 140 Jobs, Stock Bumps Up Again

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In the midst of reorganization, DraftKings recently cut 3.5% of its workforce. 

DraftKings eliminated 140 jobs Wednesday as the Boston-based company works on operational efficiencies, according to a company spokesperson. The news was first reported by iGaming NEXT.

“We are constantly evaluating our teams to ensure that they are best positioned to meet our company goals in 2023 and beyond,” the spokesperson said in an email to LSR. “We have decided to reorganize some teams which is resulting in the elimination of approximately 140 roles.”

DraftKings reorganization effects

The spokesperson said the cuts affect departments across the company. DraftKings will redeploy resources to better “align with priorities.”

“As we intend to reduce certain hiring in 2023, the talent acquisition team has experienced a slowdown in candidate recruitment,” the spokesperson said. “Similar, in engineering, we are shifting investment from B2B into mobile development, platform, and other areas.”

The Boston Globe reported 15 eliminated jobs were in Massachusetts, where more than 1,300 DraftKings employees are located. The cuts were focused in Europe, the Middle East and Africa, according to CNBC

DraftKings spox: these are not layoffs

The spokesperson said there is nothing more than reorganization to the job losses. DraftKings did not provide any financial projections as it prepares to report its 2022 fourth-quarter results Feb. 16.

DraftKings stock increased 10% Wednesday, and it is up 52% within this year to nearly $17 per share. The stock hit an all-time high of nearly $72 in March 2021.

The sportsbook continues to enter new markets as the US sports betting industry matures. Its home state of Massachusetts will launch mobile sports betting this year.

Layoffs rampant in tech in 2023

Companies across the technology sector have cut jobs this year, including Amazon, Google and Spotify. Last month, Bally’s Corp. announced a digital gaming staff reduction of up to 15%.

Multiple companies joined in laying employees off Wednesday. FedEx announced job cuts to its officer and director team by more than 10%.

Electric vehicle company Rivian announced a 6% workforce cut.