Fantasy Sports Site FanDuel Lays Off Some Employees Following Departure Of CEO

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FanDuel layoffs

This is a developing story and will be updated.

Daily fantasy sports site FanDuel went through a round of layoffs this week, as the site continues to adjust to the new economics of the space.

FanDuel layoffs after Eccles’ departure

Just last month, the site announced that its CEO and founder, Nigel Eccles, was leaving the company.

The scope and focus of the layoffs was still unclear as of Tuesday. But a FanDuel spokesperson offered this statement to Legal Sports Report:

With the Supreme Court hearing oral arguments regarding PASPA and audiences increasingly watching sports through alternative platforms like ours, FanDuel restructured the operational functions within its core business yesterday to enable employees to maximize product innovation and delivery, and capitalize on the momentum across the sports tech industry.

The move comes as FanDuel, once the undisputed leader in the DFS, has clearly ceded the No. 1 position to DraftKings.

After rapid expansion in 2014 and 2015, the company has been more likely to shed jobs as it has struggled to hold market share and as it strives toward profitability.

An audit from a UK firm also questioned FanDuel’s economic position and ability to raise more funds. Sale rumors have swirled around FanDuel after a planned merger with DraftKings fell through.

More on the layoffs

Which and how many employees were laid off is unknown, but most appear to have come on the product side and reach as high as the vice president level.

With Eccles out and FanDuel seeking new direction under new CEO Matt King, the seat of current Chief Product Officer Tom Griffiths — a FanDuel co-founder — could be hot. Both Griffiths and Lesley Eccles gave up their positions on FanDuel’s board of directors earlier this year, but before Nigel Eccles left the company.