December 4, 2023 3 min read

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Sports-Betting Startup Mojo Announces Substantial Layoffs amid Strategic Pivot

The company has faced challenges in reaching profitability, causing its management to reevaluate its strategy and explore new avenues for growth

Mojo, the sports-betting startup co-founded by MLB icon Alex Rodriguez and Jet.com co-founder Marc Lore, is undergoing significant changes as it announces a 20% reduction in its workforce. The company confirmed this decision, while sources close to the organization revealed it is part of a broader strategic shift.

The Company Is Reevaluating Its Market Position

A Mojo spokesperson acknowledged the workforce reduction, characterizing it as a tough day for the company while expressing gratitude to the impacted employees for their valuable contributions. The layoffs, disclosed to the staff on Thursday, indicate a move away from its consumer-oriented business towards an increased focus on its B2B trading technology.

Regretfully, we let go of about 20% of the company today. It’s certainly a sad day for us, and we thank those talented employees for their many contributions.

Mojo spokesperson

Mojo’s situation reflects a broader shift in the sports betting landscape. Similarly to other early-stage sports-betting startups, the company has faced challenges securing funding and achieving profitability amidst a changing market landscape. Mojo refrained from commenting on whether this decision marks a strategic shift but clarified that it is not divesting its B2C business.

The operator’s decision to streamline its business reflects a similar sentiment among many other industry startups whose products target specific market niches. Outliers like Betr demonstrate the feasibility of a more diverse approach, leveraging the synergies between its media and sports betting arms. However, that is becoming the exception rather than the norm. 

Startups Face Increasing Challenges

Mojo, initially founded by Lore, Rodriguez, Vinit Bharara, and Bart Stein, managed to raise $100 million from investors, including Thrive Capital and the NFL Players Association. The startup aimed to engage customers by offering a unique player stock market where users can trade based on athlete performance, akin to trading shares in a company.

Sources close to the company revealed that its ambitious approach caused unwelcome delays, hurting its journey towards profitability. Mojo representatives did not elaborate on the operator’s plans. However, they noted that exciting developments were in the pipeline. Hopefully, the company can regain its footing and find a market niche where it can excel.

This recent move by Mojo echoes similar industry trends, with other sports-betting startups also trimming their workforce amid a challenging climate for early-stage companies. Rising macroeconomic challenges and efforts by market leaders to stifle competition mean any newcomer to the sector must offer an innovative product and secure significant support from investors.

Deyan is an experienced writer, analyst, and seeker of forbidden lore. He has approximate knowledge about many things, which he is always willing to apply when researching and preparing his articles. With a degree in Copy-editing and Proofreading, Deyan is able to ensure that his work writing for GamblingNews is always up to scratch.

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