Be careful what you wish for Davey.
Barstool Sports is anticipated to face significant cuts, which will have a detrimental impact on the company.
According to New York Post media reporter Andrew Marchand, the company is expected to lay off approximately 25% of its workforce, resulting in around 100 individuals losing their jobs.
These cuts were prompted by the company’s buyback from founder Dave Portnoy, leading to the loss of financial support from billion-dollar gambling company Penn Entertainment.
In 2020, Barstool Sports was acquired by Penn, who believed that the company would attract a large customer base for its sports betting app and physical sportsbook locations. Consequently, Penn heavily invested in Barstool, considering it a marketing and branding expense.
During its ownership under Penn, Barstool’s employee count grew from around 130 to 430. However, reports suggest that the media company incurred significant losses and failed to meet the desired partnership expectations of Penn.
Now that Barstool is once again privately owned by Portnoy, he is faced with the difficult decision of reducing staff size or personally sustaining substantial financial losses to meet payroll obligations. This situation is an unfortunate outcome of transitioning from a public to a private company.
Portnoy has been honest with both his employees and the public about the impending layoffs, expressing his dislike for this necessity.
I took the company back to save as many jobs as I could and keep idiots like Smitty employed, and he’s going to act like he’s not going to renew? pic.twitter.com/GXGwgZBOUC
— Dave Portnoy (@stoolpresidente) August 29, 2023
On Wednesday, Portnoy conveyed his feelings, stating, “It sucks. Laying off people is truly, truly, truly the worst thing.”
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