Uptoapps

Technology, information and media company Better Collective is reportedly dropping off a significant number of employees, as the company has had to downgrade its financial targets for the year and is facing more difficult-than-expected times ahead.

Media reports 100 jobs on the chopping block

Better Collective CEO Jesper Søgaard has shared in a post on LinkedIn that the company has made the difficult decision to part ways with some of its team members, which Front Office Sports reported amounted to more than 100 people.

"The decision was not made lightly, but prompted by lower-than-expected performance, in particular, due to shifts in the US market as well as a continued slowdown in commercial activities in Brazil in anticipation of the upcoming regulations – markets that in recent years have been growth drivers for BC [Better Collective] and which we still believe have strong long-term growth potentials ahead," Søgaard said in the post.

Better Collective has grown organically and extensively over the years, Søgaard noted, but this has also added to the complexity of the company’s structure. To make sure that the company moves forward, Søgaard insisted that the changes enacted today would help calibrate and guarantee its long-term resilience and sustainability.

Although the changes ahead are difficult, Søgaard remained confident about the outcome to help tide over the organization through the rough patch.

Søgaard did not comment on how many people will indeed be impacted, with his company having around 1,200-odd employees at the end of 2023, but according to Front Office Sports, who spoke with sources with knowledge of the matter, some 100 people will be impacted.

Better Collective’s stock takes a hard tumble

For its part, Better Collective has made waves steadily, with the company acquiring Playmaker Capital in a groundbreaking deal last year. The company also bought Playmaker HQ, and a few years prior, Better Collective made headlines by acquiring The Action Network for the eye-watering $240m.

However, last week, the company had to adjust its financial guidance for 2024, downgrading it by 10%. More notably, however, Better Collective’s stock lost a lot of momentum over the past month, losing 38.68% of its value, and specifically going from $20.60 on October 24 to $13.08 on October 29.

Better Collective is not the only media and affiliate company that has faced a difficult financial spell recently. Previously, Catena Media announced that it too has to drop 29 people across its content team.