New York-based startup SimpleBet has let go of 18 more staffers in a new round of layoffs.
Departures including former co-founders and co-CEOs Scott Marshall and Joey Levy. Other senior managers were also let go, including former Kambi exec Francesco Borgosano and former Ladbrokes exec Leo Gaspar.
Borgosano was COO at SimpleBet while Gaspar was EVP for sportsbook product and revenue.
Slow progress at SimpleBet
Simplebet also laid off several data scientists, meaning the company has now let go of more than 30 data scientists since January.
Marshall and Levy were not given severance for the removal from their positions.
In addition to the layoffs last week, Simplebet also rescinded return offers for interns who had planned to come back and work full-time starting this summer.
Coronavirus impact to blame?
In a statement, the company said it was feeling the effects of the coronavirus pandemic and had taken steps to stretch its capital into 2021.
However, it’s worth noting the company has yet to bring a product to market and had no revenues even before the virus hit.
The company raised more than $40 million in funding since its foundation in 2017, according to Pitchbook, including an $11m round in March. SimpleBet has pledged to build an entirely automated algorithmic pricing and trading platform for the US sports betting industry.
SimpleBet provided a statement:
“Over the past few weeks, we have worked tirelessly implementing top down budgeting decisions, designed to stretch our capital into 2021, when we can comfortably foresee the onset of professional sports once again.
This exercise required very difficult decisions, not unlike many of our colleagues across media, gaming, professional sports and other live events and entertainment organizations.
SimpleBet optimistic about 2021
The third SimpleBet co-founder, Chris Bevilacqua, will continue in his role as CEO while not drawing a salary.
SimpleBet added: “Sports will return, good health will return and with continued focus and prudent management, we are confident that SimpleBet will fulfill the promise we have all been working toward.”
While many sports-focused firms are struggling in the wake of coronavirus, former Simplebet employees have been vocal about their issues with the firm’s recent actions.
On Glassdoor, the company scores 2.8 out of five across 26 reviews from employees.
