DraftKings cuts undisclosed jobs ahead of third-quarter results
Results1 min read
DraftKings cut an undisclosed number of jobs last week, according to media reports, and declined to comment on personnel decisions. The cuts came days before the company reported third-quarter revenue of $1.33bn and reduced its 2026 adjusted EBITDA guidance to $175m-$275m from $700m-$900m.
DraftKings laid off staff last week, marking at least its second round of cuts in 2026. Employees were notified just days ahead of the company's third-quarter results, according to Front Office Sports.
The extent of the job losses remains unknown, and a DraftKings spokesperson declined to discuss personnel decisions. DraftKings had a workforce of approximately 5,500 at the end of 2025.
DraftKings reported third-quarter revenue of $1.33bn, up 16% year on year, and cut its 2026 adjusted EBITDA guidance to $175m to $275m from $700m to $900m. The reduction primarily reflects a $650m to $700m investment in DraftKings Predictions.
The Predictions product was developed largely using existing staff, CEO Jason Robins told analysts on the earnings call. He pointed to AI and other measures as sources of efficiency, and said the company was concentrating on keeping fixed costs and overall spending lean. He did not directly discuss the layoffs.
DraftKings shares fell more than 29% on Friday morning and were down 48% for the year as of Monday afternoon.
Jeffrey Pfeffer, a professor of organisational behaviour at Stanford Graduate School of Business, said research suggests layoffs are not necessarily a response to economic pressure.