DraftKings cuts 140 jobs as part of reorganization

DraftKings cuts 140 jobs as part of reorganization

The entrance from the elevators, designed to resemble a tunnel entering a stadium, is pictured at the DraftKings office in Boston.

David L. Ryan | The Boston Globe via Getty Images

DraftKings is eliminating 140 jobs, or about 3.5% of its workforce, as part of a reorganization.

The stock rose about 3% on Thursday.

The sports betting giant said it is increasingly focused on making its operations more efficient.

“We are constantly evaluating our teams to ensure they are best positioned to meet our company goals in 2023 and beyond,” a company spokesperson said in a statement.

DraftKings said it’s shifting investment from business-to-business into mobile developments. Affected segments include engineering and talent acquisition.

DraftKings also said roles are being eliminated in the U.S and internationally, but primarily in its Europe, Middle East and Africa segment.

The company plans to report 2022 fourth quarter results on Feb. 16.

Earlier this week, DraftKings and Molson Coors announced a partnership related to their Super Bowl ad.

(With inputs from CNBC)