Sportradar announced a workforce reduction plan during Wednesday's quarterly earnings call, a move that represents a strategic shift for a company that is embarking on data partnerships with two major global sports associations this year.
The pivot comes in spite of a quarter where the sports betting data provider attained its highest level of profitability since becoming a public company. Sportradar’s reduction plan drew skepticism from a prominent Wall Street analyst, who questioned the rationale for cutting a considerable portion of its workforce while attaining growth of 20%+ in several categories.
Under the plan, Sportradar will reduce its global workforce by approximately 10%, according to CEO Carsten Koerl, who expects the layoffs to be “materially completed” by the end of the company's first quarter in 2024. While Koerl indicated that the layoffs were difficult to make, he noted that the reductions are part of a broader set of initiatives designed to position the company for future growth.
As part of the initiatives, Sportradar intends to streamline the company's operating structure, generate higher return on investment from various products, and improve portfolio optimization, according to Koerl. This will enable Sportradar to focus intently on its “strategic priorities” and “capture market opportunities” in the relatively near future, he added.