DraftKings is undergoing a company-wide restructuring that will result in job cuts across the company.
The Boston-based online gaming and betting giant confirmed to SBC Americas that it is undergoing a reorganization sparked by a desire to reduce general and administrative costs.
“DraftKings has decided to reorganize some teams to better align their people with the most important priorities and areas of investment for the company,” a company spokesperson said in a statement to SBC Americas. “Unfortunately, these changes will impact some roles across the organization.
“The company believes that while these decisions are difficult, they are necessary to best position them for future growth.”
Citizens analysis highlights big rise in costs
The news of DraftKings’ restructuring comes after it posted a 22% year-over-year increase in G&A costs, according to data provided by Citizens Capital Markets and Advisory Managing Director of Gaming Equity Research Jordan Bender. The analysis suggested that DraftKings’ product and technology costs also increased 26% year-over-year in 2025 as the company established a footprint in prediction markets with the launch of its own platform.
Bender projects DraftKings could reduce its global workforce, which spans 13 countries, by approximately 5%. He estimated that kind of reduction would result in an annual cost savings of $30m, based on a median salary estimate of $100,000.
In 2025, the gaming giant had a workforce of roughly 5,500 employees, so Citizen’s estimate suggests mroe than 250 roles could be affected. DraftKings has not disclosed which roles will be impacted.
This would be DraftKings’ second round of layoffs in around three years. In 2023, it parted ways with 140 employees, which represented roughly 3.5% of the company’s workforce at the time. The majority of layoffs were positions held outside of North America in regions that included the Middle East and Europe. The roles impacted included human resources and engineering positions.
Job cuts already budgeted for?
DraftKings is set to part ways with a contingent of employees less than two weeks after reporting its latest earnings results.
The company posted $1.9bn in revenue in Q4 2025, a 43% increase year-over-year. Adjusted EBITDA was $343m during the quarter, up from the $89.4m it reported for the same period last year. In Q4 2025, the company’s net income closed at $136.4m, compared to a net loss of $134m in Q4 2024.
DraftKings projects its full-year revenue in 2026 will range between $6.6bn and $6.6bn, compared to the $6bn in full-year revenue the company reported in 2025. It estimates adjusted EBITDA in 2026 to range between $700m and $900m. By comparison, DraftKings posted an adjusted EBITDA of $620m in 2025, with a full-year net income of $3.7m.
Bender suggests DraftKings’ EBITDA guidance for 2026 has already incorporated the cost-saving efforts that have come to light.
In the year-to-date period, DraftKings’ stock price has dipped by approximately 35%.
DraftKings’ plans for the future
DraftKings is restructuring as it continues to invest in the prediction market space with its new standalone online DraftKings Predictions app, which it debuted in December after acquiring Commodity Futures Trading Commission-approved derivatives exchange Railbird last October.
“Predictions is the most exciting new growth opportunity we have seen since PASPA struck down in 2018,” said DraftKings CEO Jason Robins during a Q4 earnings call. “Early signals are strong.”
DraftKings ultimately plans to use Railbird as its primary exchange to bolster Predictions’ offerings, having first launched event contracts with CME Group. It also recently signed a deal to add Crypto.com markets to its platform. According to analyst estimates cited by Robins, DraftKings Predictions could provide the gaming giant with up to $10 billion in annual gross revenue in the coming years.
DraftKings is also embracing artificial intelligence as it moves forward as a business, but Bender suggested the company’s investment in the technology could also come with long-term costs.
“We believe the current round of restructuring could have been larger or more impactful for the model if not for the push into prediction markets based on the CEO’s push to implement AI throughout the organization for internal and external functions,” said the Citizens analyst in a report. “Overall, we could expect more cost structure rationalization in the coming quarters to years as the business continues to benefit from AI and maturing markets.”
