FanDuel Lays Off Employers Following Eccles Departure
Last month we reported on Founder and former CEO of FanDuel Nigel Eccles departing the daily fantasy giant. The company which is mainly based in New York but still maintains a presence in Scotland where it was founded has reportedly laid off personnel amid growing concerns regarding their financial viability.
According to the latest reports that were filed FanDuel has lost £140m which a large portion went into legal bills which they faced in the U.S. from various authorities including the most high profile in New York.
The exact number of layoffs is not known but it is believed to be on the product side of things in the company and comes amidst the background of new CEO Matt King who is being forced to make major changes to the company structure following the failed merger with DraftKings.
DraftKings is now clearly the market leader in the daily fantasy sports market and FanDuel have without a doubt lost a lot of their appeal to investors due to poor financial results. FanDuel in a statement themselves seemed to blame the courts which to some will be seen as evading responsibility. The statement said, ”With the Supreme Court hearing oral arguments regarding PASPA and audiences increasingly watching sports through alternative platforms like ours, FanDuel restructured the operational functions within its core business yesterday to enable employees to maximize product innovation and delivery, and capitalize on the momentum across the sports tech industry.”
It is worth remembering Eccles words of optimism when he departed and the praise he gave to his successor. At the time he painted what seems to be an over the top rosy picture when he said,’ With his strategic vision, range of experiences, and broad skillset, I cannot imagine a better individual to steer FanDuel forward.”