Underdog has laid off at least 125 people as the company changes its business model to focus on prediction markets. Underdog CEO & Founder Jeremy Levine confirmed the layoffs, which include the majority of the company’s fraud team.
Levine explained the job cuts, stating, “We transitioned our business this year. We went from a focus on a state-by-state framework to a national prediction markets platform with seamless offerings across the country.”
Underdog partnered with Crypto.com in October last year, and its focus on prediction markets led it to end its sports betting operation in North Carolina and withdraw its license application to launch in Missouri’s newly regulated market.
The shift away from regulated sports betting means the needs of the company have changed. Levine added, “It’s simply a different operation, and the changes we made are a part of that transition.”
Among those laid off are the majority of the company’s fraud team, customer support, graphics, marketing, and its DFS department.
Employees Angered By Abrupt News
Front Office Sports reported that employees were abruptly told they were no longer required on Friday. One of those who lost their job said that they had “put my heart and soul into my job only to get f***ed over in the most unserious way.”
Staff members said that a meeting was suddenly added to their calendar, and a message was sent apologizing for the short notice but urging those who had received the invite to attend.
The call informing them of their layoff was short, and by the time the meeting ended, access to company property, including email and internal communications, was cut off.
CEO Delivers ‘Gut Punch’
Levine personally delivered the bad news, with one employee saying he popped up on the screen, looking “distraught,” before apologizing and saying that whoever received the message had been laid off. The employee said it was a “gut punch.”
Levine said other companies will be lucky to have the newly unemployed staff, commenting, “We take pride in hiring people who are passionate, good human beings and who really care about their work, so if you’re hiring and come across an ex-Underdog person you’d be lucky to have them and call me for a reference.”
Some of those laid off posted come-and-get-me pleas on LinkedIn. Marco Sandoval, the company’s social media strategist, wrote, “I believe God doesn’t waste seasons. And this one feels like alignment. If you’re hiring in social media, digital marketing, or content — or know someone who is — let’s connect.”
Sandoval also posted a YouTube video saying he was laid off without warning.
Underdog Core Values Include ‘Give a Sh*t’
While laying off staff, the company is also hiring in other areas. Last week, Underdog posted job adverts for an EPD Operations Manager, Senior Product Designer, and Senior Analytics Engineer.
The job ad stated, “At Underdog, we’re constantly building, shipping fast, and pivoting as we learn. One of our core values is give a sh*t – because our people care about the product, the work, our customers, and doing things better than last week.”
It remains to be seen whether the gamble on prediction markets will pay off. The company was ranked third among US startups last year after a funding round valued it at $1.2 billion.
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Underdog has laid off at least 125 people as the company changes its business model to focus on prediction markets. Underdog CEO & Founder Jeremy Levine confirmed the layoffs, which include the majority of the company’s fraud team. Levine explained the job cuts, stating, “We transitioned our business this year. We went from a focus
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