PENN Entertainment, which has been mired in acquisition speculation in recent weeks, will conduct a round of employee layoffs this week, according to an internal letter released by CEO Jay Snowden on Wednesday.
The planned changes, according to the memo, will enable PENN Interactive, the company's digital unit, to “streamline reporting lines, enhance operational efficiencies, and leverage shared resources” across the company, Snowden wrote. The layoffs include numerous employees whose job responsibilities focused on ESPN BET, reported. While PENN Entertainment has not disclosed the number of employees who will depart, the changes will result in a “limited number of team member separations,” Snowden added.
“Our interactive business, which is a core pillar of PENN Entertainment, is well-positioned and we continue to add capabilities and key talent to advance our digital growth strategy. This includes building upon our partnership with ESPN with upcoming product enhancements and a deeper integration into the ESPN ecosystem.”
The company did not disclose the number of digital employees at PENN Interactive who will be impacted by the workforce changes. Dustin Gouker, a veteran casino industry writer, first reported the departures. One departing employee impacted by the changes told Gouker that the total is a considerable amount.