Report: Flutter’s FanDuel Lays Off ‘Several Hundred’ Employees

• An internal company email explicitly confirms the staff reductions
• The headcount cuts arrive just a month after the departure of FanDuel CEO Amy Howe and are reportedly the third such cuts in less than a year
• Parent company Flutter’s shares have plunged 51.2% so far this year

Flutter Entertainment’s (NYSE: FLUT) FanDuel brand is reportedly laying off several hundred staffers across multiple divisions.

Front Office Sports broke the news earlier Monday (June 8), reporting that the largest US online sportsbook announced the headcount reductions on an internal basis last Friday and that the layoffs may impact “several hundred” of FanDuel’s 5,000 employees. Activity on LinkedIn from some of the now former FanDuel employees suggests they were in fact let go.

The news outlet suggests that these are the third round of cuts in the last 12 months, however this has not been confirmed.

However, her departure fostered ample though unconfirmed speculation in sports betting industry circles that she was made a sacrificial lamb for Flutter’s ailing share price. That stock is down 51.2% on a year-to-date basis.

Internal Email Confirms FanDuel Layoffs

Sports news website Awful Announcing procured an internal email confirming that FanDuel sent some staff packing.

Within Sportsbook, we said goodbye to a number of talented teammates across the teams,” wrote Karol Corcoran, managing director of sportsbook, in the message. “While today is difficult, I remain very confident in the future of our Sportsbook business, the strength of our strategy, and the opportunities ahead of us.”

Ari Avishay, FanDuel’s senior vice president of marketing, attempted to rally the remaining troops, extolling belief in those employees and excitement over the future of FanDuel.

At this writing, Flutter hasn’t publicly confirmed the FanDuel layoffs, but there’s already some chatter in social media circles that the expanding competitive threat from prediction markets is the culprit behind the reduced staff count.

Flutter executives recently discussed issues around promotional spending, though it’s been reluctant to point the finger at prediction markets as the source of FanDuel’s struggles.

In fact, FanDuel, as is the case with some of its sportsbook competitors, is forging into prediction markets where it’s already leveraging its trading expertise to turn profits in its market-making operations.

FanDuel Not Alone in Cutting Staff

When it comes to paring headcount in the digital gaming universe, FanDuel isn’t alone. In February, rival DraftKings (NASDAQ: DKNG) announced layoffs that could potentially affect 5% of staff. Penn Entertainment (NASDAQ: PENN) reportedly laid off 75 workers at its interactive unit last Month.

The ominous trend isn’t confined to the US. In April, Canada-based GeoComply, a provider of wagering-related cybersecurity services, announced plans to slash headcount by as much as 15%. Some other Canadian gaming companies have also announced layoffs over the past year.