FanDuel reduces its staff

Several FanDuel employees have been laid off just weeks after the company announced former CEO Nigel Eccles departure.

Scotland.- FanDuel has fallen in disgrace and was forced to fire an undisclosed number of employees mainly in the product development area due to financial problems. An audit revealed that the former daily fantasy sports (DFS) giant has been making wrong moves and has turned the board to make the decision a few weeks after former CEO Nigel Eccles left the company as well.

During H2 2015, FanDuel operating losses rose to US$286.4 million and is still working on its financial data for 2016, but auditors have urged the company to make further reduction of expenditures to help improve its liquidity position.

FanDuel has several lawsuits to deal with whilst DFS is yet to be legalised in the US and has lobbied to get states to authorise it within their jurisdiction. So far, 18 states have signed laws to regulate the segment.

The company was expecting to catch a breath with the DraftKings merger but the US Federal Trade Commission rejected the deal and blocked the operation due to a potential unlawful competition situation.