One week after Catena Media announced it was cutting nearly 30 jobs, Better Collective, which owns popular U.S. brands like Playmaker HQ and The Action Network, has conducted layoffs affecting at least 100 employees, according to Front Office Sports.

This news comes after CEO Jesper Søgaard posted on LinkedIn that the company was revising its financial targets for the year and implementing cost-saving measures, including job cuts. While the exact number of layoffs and the specific departments impacted remain undisclosed, this restructuring follows a period of significant growth for Better Collective, which had over 1,200 employees at the end of 2023.

Here is the post in its entirety:

Some emotional days for Better Collective.

Today, I shared with our team the details of the plan we are introducing to adjust our cost base following our recent trading update including a downgrade of our financial targets for the year.

Unfortunately, this plan also includes the difficult decision to part ways with some of our colleagues. Each of them has played a role in shaping Better Collective into what it is today, and for that I owe them all a big thank you!

The decision was not made lightly, but prompted by lower than expected performance, in particular due to shifts in the US market as well as a continued slowdown in commercial activities in Brazil in anticipation of the upcoming regulations – markets that in recent years have been growth drivers for BC and which we still believe have strong long-term growth potentials ahead.

Over the past years, Better Collective has grown extensively both organically and through acquisitions, adding both new verticals and competencies but also increased complexity to our organization. Taking these steps now is essential to recalibrate our organization and investment strategies to the current market conditions to secure Better Collective’s long-term success.

Since Christian and I founded BC in 2004, we have experienced two decades of growth expanding BC’s global footprint alongside an incredible team. Leading this group of people, who embrace our vision and act as true advocates for Better Collective is an immense privilege.

Although we are now focusing on navigating difficult changes, I remain confident that we will emerge stronger as a group and are well-equipped for the long-term growth opportunities ahead.

Best regards,

Jesper
In 2021, the sports betting site The Action Network was acquired by Better Collective for $240 million. Last week, Better Collective adjusted its financial guidance for its 2024 revenues downward about 10% to between $384 and $405 million. A slowdown in its operations in Brazil ahead of new regulations related to sports betting going into place in the country next year was cited as a major reason for the adjustment.

Read more here: https://frontofficesports.com/action...er-collective/