Restructuring of games company
FanDuel reveals lay-offs following Eccles exit
Nigel Eccles: left the company last month (photo by Terry Murden)
Fantasy sports company FanDuel is understood to have laid off a number of workers in the past week following the departure of CEO Nigel Eccles.
The company, which launched in Edinburgh but is now headquartered in New York, did not confirm numbers but in a statement issued in the US it said: “FanDuel restructured the operational functions within its core business yesterday to enable employees to maximise product innovation and delivery, and capitalise on the momentum across the sports tech industry.”
FanDuel, which retains a substantial presence in Edinburgh and Glasgow, experienced rapid expansion in 2014 and 2015 but was hit by a series of legal actions which curtailed its activities and cost millions in court battles.
Its most recently filed accounts show it racked up a loss of $185.6 million (£140m) as revenue fell below expectations.
The company soared to a $1 billion valuation but a recent audit questioned the company’s trading position and it was involved in merger talks with big rival DraftKings until the deal was aborted in the summer.
Most of the layoffs are said to be on the product side and come as new CEO Matt King rebuilds the company following co-founder Mr Eccles’ exit.
The focus has turned to chief product officer Tom Griffiths — also FanDuel co-founder — who left the board with Nigel Eccles’ wife Lesley earlier this year.
The board was restructured following the sale of equity to a number of private equity investors, including KKR and Shamrock Holdings.