ESPN BET is preparing for Penn Interactive to have another round of layoffs

In mid-July, Penn Interactive announced that some employees working for ESPN would be laid off. Several well-known on-air personalities like Mark Jackson, Jeff Van Gundy, Suzy Kolber, Sam Ponder, and Jalen Rose were let go. The number of employees laid off by Penn Interactive in July is still being determined. Recently, it was announced that Penn is having another round of layoffs. 

A spokesperson for Penn Interactive couldn’t detail how many employees will be laid off the second time around. They claim the limited number of positions at the company are part of their organizational initiatives after acquiring theScore. After the market opened last Friday, Penn’s stock was down more than 1%.

Is the second round of layoffs at Penn unexpected?

Back in July, Penn Interactive CEO Jay Snowden addressed the company in an internal letter. He explained Penn’s need to reduce their workforce. Resulting in team members losing their jobs. The second time the company will have layoffs in the last three months. In Snowden’s July letter, he detailed how Penn wanted to “streamline reporting lines, enhance operational efficiencies, and leverage shared resources.”

This fall, Penn Interactive is dealing with the potential second round of layoffs. However, that is not the only issue Penn is trying to tackle. Penn failed to have their ESPN BET app available in time for college football or the start of the NFL in New York. A decision could be made this week for ESPN BET to go live. Almost a month after they planned to be open. The second round of playoffs on top of failing to have NFL betting live for New York is a bad look for Penn.

What changes is Penn making with the second round of layoffs?

The second round of layoffs seems inevitable for Penn. However, they need to make sure they do not lay off too many Interactive employees. That would be disastrous for the company in their busiest time of the year. Additionally, Penn and Disney are still working on integrations between ESPN Bet and the ESPN media app. 

Aaron LeBerge was hired by Penn from Disney to serve as their new chief technology officer. LeBerge was handpicked by Benjie Levy. He previously held the role before Leberge was hired. Recently, LeBerge tweeted that ESPN BET is “just getting started” the day after the 2024 NFL season began. Penn’s online gaming app will look to compete with the top U.S. sportsbooks like DraftKings and FanDuel.