Penn Entertainment laid off ESPN Bet employees ahead of Q2 earnings

Unfortunately, Penn Entertainment has been forced to make some tough decisions. Earlier this week, it was announced that the company is reducing its number of employees. Specifically, positions affecting those who work with ESPN Bet. On the job site LinkedIn, ESPN Bet employees began posting about being laid off by PENN. One public post was from an affiliate marketing manager who used to be employed by the company. On Wednesday, CEO Jay Snowden released a letter to the PENN saying that there were a “limited number” of layoffs. Despite employees being let go, Snowden is still trying to keep a positive approach to who is left. He had this to say.

“This week, we are implementing changes at PENN Interactive to help streamline reporting lines, enhance operational efficiencies, and leverage shared resources across PENN. Unfortunately, these changes will result in a limited number of team member separations. While it is difficult to see colleagues impacted, we deeply appreciate their contributions and are committed to supporting them through the transition.” – Jay Snowden

Penn Entertainment is doing what it can to survive in a highly competitive market

Since the beginning of this week, Penn’s stock has been down. However, that number is still up since May 31 when an investor letter stating frustration with Penn’s digital losses sparked a rally. This was an open letter from the Donerail Group. An agency that invests in and advises companies during strategic transformation or critical inflection points. The letter from the Donerail Group was sent to Penn’s chairman. They called for called for Penn’s sale to see the true value of the company. However, this caused Penn’s stock to jump 20% in one day. This helped their stock price from a low point they had not seen since the pandemic in 2020. Two other factors came into play for Penn since the letter came to them on May 31. Boyd Gaming is an American gaming and hospitality company. Since the letter came to Penn, Boys has appointed a director.

They were suggesting that the company could have an interest in buying Penn. Another factor helping CEO Jay Snowden is that the Supreme Court will not review the Florida sports betting case. Last year, Penn Entertainment cut its ties with Barstool Sports and partnered with ESPN Bet instead. However, the business turnaround they expected has not happened yet. In Q2, ESPN Bet ranked sixth with a 3.2% hold. That was down from the 4.7% share they had in Q1. Additionally, their gross revenue ranked sixth in the second quarter, There’s a chance for those Q2 numbers to fluctuate as Ohio, Illinois, and Arizona have not reported their June figures.