Yesterday (8 October), Rivalry CEO and co-founder Steven Salz said on LinkedIn: “We completed a restructure last week, which unfortunately impacted the roles of several talented team .”
He also provided a list of those affected and encouraged potential employers to reach out. The list, Salz noted, may grow as more employees share their details. As of 9 October, there are 12 employees listed.
The majority of the roles affected were in customer care, with some in marketing also facing layoffs, including the position of global marketing director.
In July, Salz said Rivalry was prioritising areas where it achieves the highest customer success and return on invested capital.
He added that this also means the company requires staff with different skillsets compared to previously.
Speaking to NEXT.io, Salz reiterated the rationale behind the recent layoffs: “Rivalry recently completed a company restructuring affecting 28 of our talented colleagues as we continue to shift our teams, resources, and focus around a new strategic path we are heading on.
“We are finding increased leverage, product-market fit, and return on investment from our expansion into crypto and emphasis on high-value players.
“Despite the opportunities being created for Rivalry, it’s clear these shifts mean rethinking parts of our strategy and team that can build on the momentum we’re experiencing and become a profitable, category-defining gambling brand.”
Change of strategy
Founded in 2017 with a focus on esports betting, Rivalry has been pursuing a diversification strategy in recent years.
In 2022, the company expanded into iGaming, evolving into a broader gaming platform.Earlier this year, Rivalry announced plans to enter the B2B sector, seeking new revenue streams.
Most recently, it launched the Rivalry Token, a blockchain-based utility token, as it ventures into cryptocurrency gambling.
In its reply to NEXT.io, Rivalry stated that it is “very rapidly moving” in a new direction, focusing more deeply on crypto, adjacent technologies, high-value players, and a digital-first audience.
While there is some overlap with its current audience, product offerings and brand, the company said it is “recalibrating” the business to better position itself for its future roap.
Hiring for new roles
Prior to July, Rivalry had a workforce of 144 employees. After two rounds of layoffs, the company reduced its workforce by 38%, bringing the total down to 89 employees.
However, Rivalry confirmed it is currently in the process of hiring for new roles and replacing others with individuals who have different skill sets.
Several new team have already been onboarded in recent months, and the company plans to continue hiring as needed in the future.
Nonetheless, the layoffs come amid a challenging period for the company, whose stock has dropped 83% over the past 12 months.
In Q2 2024, Rivalry posted GGR of C$7.4m, down 12.9% year-on-year, with betting handle falling 21.7% to C$87.8m.
Rivalry said the reduced betting handle came as the result of an increased focus on improving margins within the business.
However, the company said the pre-launch of its native cryptocurrency Rivalry token has helped drive additional revenue since the end of Q2.
