DraftKings reportedly cuts staff ahead of third-quarter results
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DraftKings reportedly notified affected employees of staff cuts the week before its third-quarter results; the company declined to comment on personnel decisions. The number of affected employees is unknown, while DraftKings reported third-quarter revenue of $1.33bn and lowered its 2026 adjusted EBITDA forecast to $175m-$275m.
DraftKings reportedly notified employees of job cuts last week, days before publishing its third-quarter results. The number affected is unknown, and the company did not disclose a figure. A company spokesperson declined to comment on personnel decisions.
DraftKings reported third-quarter revenue of $1.33bn, up 16% year on year, and lowered its 2026 adjusted EBITDA forecast to $175m to $275m from $700m to $900m. The forecast adjustment was mainly due to an investment of $650m to $700m in DraftKings Predictions.
During the results presentation, chief executive Jason Robins told analysts that DraftKings had developed its predictions product with virtually the same workforce it has today. Robins attributed efficiency gains partly to artificial intelligence and said the company was focused on managing its costs. He did not directly address the job cuts.
DraftKings shares fell more than 29% on Friday morning and were down 48% for the year by Monday afternoon.