Business

DraftKings nixes 140 jobs for ‘operational efficiencies’ as Mass. launches sports betting

Fifteen of the positions cut were based in the Bay State.

By Christopher Gavin

February 2, 2023

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DraftKings is cutting roughly 140 jobs as it factors for “operational efficiencies.”

The news arrives the same week as Massachusetts, the publicly traded tech company’s home state, made its foray into casino sports betting.

The cutbacks were confirmed by Stephen Miraglia, a DraftKings spokesperson, to the Boston Business Journal on Wednesday.

Of the jobs nixed, 15 positions were based in the Bay State — home to over 1,300 of 4,000 DraftKings employees globally.

CEO Jason Robins had actually vowed in 2021 to hire more employees in Massachusetts if the state legalized sports betting.

“With increased focus on operational efficiencies, we are constantly evaluating our teams to ensure that they are best positioned to meet our company goals in 2023 and beyond,” Miraglia wrote in a statement to the business news outlet this week. “We have decided to reorganize some teams, which is resulting in the elimination of approximately 140 roles.”

The confirmation came a day after Massachusetts officially launched legalized sports betting for people at least 21 years old at the state’s three casinos.

In January, DraftKings secured initial approval from state regulators to host mobile sports betting that could potentially go live sometime next month, according to the Business Journal.

On Wednesday, DraftKings (Nasdaq: DKNG) shares closed at $16.48, up 9.9 percent, with a market capitalization of $7.4 billion, the outlet reports.

The layoffs follow recent cutbacks at major tech companies and other businesses, including Boston-based DIY-furniture giant, Wayfair.