Key Notes
- Polymarket confirmed staff cuts and the termination of some contractor agreements in a broader reorganization.
- Contractors account for more than half the cuts, while the company has not disclosed total headcount changes.
- The changes follow senior hires and come as Polymarket trails Kalshi in monthly trading volume.
Polymarket has cut staff and ended relationships with contractors as the prediction-market company reorganizes under new senior leadership and tries to regain ground against Kalshi.
The company confirmed the changes on November 11 after an internal email circulated online. Bloomberg reported that founder Shayne Coplan had faced investor pressure to bring greater discipline to the business, which has fallen behind its main competitor in trading activity.
Contractors Account for Most Cuts
More than half of those affected were contractors, Reuters reported, citing a person familiar with the matter. Polymarket declined to disclose either the number of people leaving or the proportion of its workforce affected.
The email ended one contractor agreement effective November 4 as part of a company-wide reduction in force. Polymarket confirmed that the screenshot was genuine.
In a statement, the company described a broader reshaping of its team, involving new hires, personnel changes and departures as it prepares for its “next phase of growth.” It did not provide an IPO timetable or proposed offering terms.
A Bigger Business With a Stronger Rival
The cuts come alongside a sharp expansion in business. Polymarket recently said its revenue run rate had surpassed $1.8 billion. That annualized figure projects a recent pace of revenue over a year; it is separate from trading volume and does not establish profitability.
Even as Polymarket grows, Kalshi has overtaken it in monthly trading volume, Reuters reported. Kalshi raised $1 billion at a $40 billion valuation late last month, giving the rival more capital for expansion. The financing followed the fundraising talks we covered in September.
Regulatory scrutiny also continues. Reuters reported that the Commodity Futures Trading Commission is examining whether Polymarket breached a 2022 agreement to keep US customers off its main overseas platform. The company also operates a separate, regulated US exchange.
New Finance Leadership Takes Shape
Polymarket appointed Warren Jenson chief financial officer in September, assigning him responsibility for financial and capital strategy, long-range planning and the finance organization. He reports to Coplan. The company has also hired Travis VanderZanden as chief growth officer.
The company is adding senior executives while reducing other roles. It has yet to disclose the financial savings it expects from the cuts or how the reorganization will change its spending.
