DraftKings is the latest tech company cutting jobs. The Boston-based online betting firm said on Wednesday it would cut 140 jobs, or 3.5 percent of its global workforce, as part of a reorganization.
The cuts included 15 people in Massachusetts out of more than 1,300 employed in the state.
DraftKings’ stock jumped 10 percent on Wednesday and is now up more than 44 percent this year.
Unlike many other companies making job cuts this year, DraftKings’ workforce reduction was not due to slowing business or concerns about the economy, a spokesman said in a statement to the Globe.
“With an increased focus on operational efficiencies, we are constantly evaluating our teams to ensure that they are best positioned to meet our company goals in 2023 and beyond,” the DraftKings statement said. “We have decided to reorganize some teams which is resulting in the elimination of approximately 140 roles.”
DraftKings said it is reorganizing its engineering staff to focus more on mobile development. The company also is cutting some of its recruiting staff as it anticipates reduced hiring in 2023.
Included among the cuts was Paul Finnell, DraftKings’ fraud team lead, according to a post by Finnell on LinkedIn. DraftKings was hit with a wave of unauthorized withdrawals from customer accounts in November.
“Absolute shock to the system this morning,” Finnell wrote. “Tough to find out that my position is being eliminated due to company org changes and realignment.”
The company continues to benefit from additional states allowing online betting and sports betting for the first time. Ohio and Maryland recently opened betting for DraftKings customers, and mobile betting in Massachusetts is slated to begin in March.
DraftKings joins many other tech companies that have cut jobs already this year. HubSpot cut about 500 jobs, or 7 percent of its workforce, on Tuesday. Others cutting jobs in the past week include PayPal, IBM, and Spotify.