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- The layoffs hit TV streaming provider FuboTV.
- The company confirmed to Insider that it laid off a “small” US staff on August 2.
- The company is expected to announce its earnings on August 4.
FuboTV has laid off several employees in the US, the streaming TV company confirmed to Insider.
The company said in a statement that it made a “minor workforce reduction” on Aug. 2 in light of the economic downturn.
The announcement said:
“The rapidly deteriorating macroeconomic environment, combined with the increasing level of uncertainty, is affecting all companies. FuboTV continues to focus on cost savings and take a conservative approach to growth. As part of this, the company has made a small workforce reduction in the US While not welcome, this reduction is an opportunity for Fubo to review key initiatives and focus on profitable growth to support its long-term vision.”
FuboTV told staff about the layoffs in a memo from CEO David Gandler seen by Insider. Affected employees will be invited until 10 a.m. EST on Aug. 2 to meet with management, and the layoffs will be effective Aug. 15, according to the memo.
Layoffs are coming as is FuboTV is scheduled to present second quarter financial results on Thursday after the market closes.
The sports-focused pay-TV and gaming provider went public in 2020. It had a divisive run as a meme-stock from late 2020 to 2021 after revealing plans to expand into the hot sports betting sector. However, the company is still not profitable, and Wall Street has been tough on both media and sports stocks, not doing well amid the economic downturn.
Shares of FuboTV opened at $2.46 on the morning of Aug. 2, down about 80% year-to-date, compared with the S&P 500’s 14% decline during that period.
Read the full memo FuboTV sent to staff:
Subject: Organizational Update
Club,
While FuboTV was founded on one idea – to give consumers access to global sports content
delivered through a premium user experience at a fair price – Alberto and I, along with ours
co-founder Sung Ho Choi, could never have made it a reality without the persistence and
drive of many dedicated, hard-working and talented people. We were always grateful for that
you have supported our vision from the beginning.
Because we have accomplished many things together, I always want to be transparent with you. So,
It is with a heavy heart that I announce some bad news today.
As you know, all growth stage companies, and the broader tech sector as a whole, have struggled
economic challenges due to macroeconomic concerns and increasing level of uncertainty.
Fubo is unfortunately not immune. We have worked hard over the last few months to achieve this
cost savings by reducing unnecessary costs across the company, but, unfortunately, we have to do it
it does more.
To support the long-term vision and ensure financial flexibility for the company, we have done
the very difficult decision to cut the number of employees in the US domestic business units. Employees
affected by the reduction will receive an invitation by 10 a.m. ET today to meet
management and will be transferred by the company on August 15
colleagues in this transition. I am here to help them in any way I can.
I want to be clear that this reduction does not reflect individual performance. We made these
is changing today solely to ensure that the company is financially stronger and to
support our path to profitability. Several factors were taken into account when deciding who it would be
are affected by this reorganization. No further reductions are foreseen at this time.
This was an extremely difficult decision made by myself and the senior leadership team. I
we’ve always prided ourselves on never initiating layoffs at Fubo. I always
found a way for Fubo to persevere despite the financial challenges we faced. However, it is not
more my decision alone. There are a significant number of external forces at play here now
that we are a public company.
Senior leaders will meet with their teams today and, in the coming days, will continue
their teams through organizational changes and team reshuffles. They will expose a lot
focused efforts around key organizational priorities. I am also here to help you in any way I can
during this process.
While we certainly do not applaud these cuts, this is an opportunity to review our initiatives,
we are doubling our priorities and focusing on profitable growth. Focusing more on less
priorities, and as everyone rises to the challenge, we must increase our productivity
what really moves the needle for the company. We need to make sure Fubo is still the
innovative, fast and agile organization that we were in the beginning, always operating
with a clear sense of urgency to achieve our goals.
Our direction remains clear: provide our customers with the best-in-class user experience
allows them to enjoy and interact with aggregated sports, news and entertainment content. I
you have no doubt that we can achieve this if we work together and commit to execute
targets. I look forward to doing this with you.
I will be hosting a meeting on Wednesday for US employees just to answer any questions.
David
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