DraftKings Restructures Workforce Again To Further Reduce Costs

DraftKings has confirmed workforce reductions as part of an internal reorganization aimed at controlling costs and redirecting resources toward priority initiatives.

Good to Know

• Analyst estimates restructuring could deliver about $30 million in annual savings
• Cuts represent the second round of layoffs in three years following a 2023 reduction of 3.5 percent
• Revenue rose 43 percent year over year in the fourth quarter of 2025 despite rising operating expenses

Social media posts from affected employees surfaced before public confirmation, prompting DraftKings to acknowledge changes across several departments. Company leadership framed the decision as a realignment rather than a broad downsizing effort.

“DraftKings has decided to reorganise some teams to better align their people with the most important priorities and areas of investment for the company,” a spokesperson said to The Boston Globe. “Unfortunately, these changes will impact some roles across the organisation. The company believes that while these decisions are difficult, they are necessary to best position them for future growth.”

Citizens investment analyst Jordan Bender evaluated the scale of the reduction and suggested the percentage likely sits toward the lower end of layoffs seen across the technology sector in recent years, where workforce cuts have ranged from 2 percent to 15 percent. A reduction of roughly 5 percent could translate into about $30 million in savings, assuming a $100,000 median salary.

Timing of the decision came shortly after the latest earnings report, which showed strong top line expansion. DraftKings recorded a 43 percent increase in revenue during the fourth quarter of 2025, even as internal costs continued climbing.

Operating expense growth has drawn attention from analysts tracking profitability. General and administrative spending rose from 6 percent to 13 percent to 22 percent between 2023 and 2025. Product and technology costs increased from 12 percent to 26 percent, while sales and marketing moved from 3 percent to 9 percent, even as legalization momentum and new player acquisition began to slow in several markets.

DraftKings now projects full year 2026 revenue between $6.5 billion and $6.9 billion, alongside adjusted EBITDA expectations ranging from $700 million to $900 million. Bender noted that workforce changes were likely already factored into those projections.

“On one hand, we can take the view that cost savings will act as a cushion baked into guidance, while on the other hand, it will work as an offset for the increasing fixed costs stemming from the launch of DraftKings Predictions,” Bender wrote in a note to investors.

Market performance has added pressure to show a clearer path to profitability. Share price has fallen about 56 percent from a 52 week high, with trading around $22.94 per share midweek.

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