The prediction market platform confirms layoffs following leadership changes and the loss of its trading-volume lead to Kalshi, despite reporting more than $1.8 billion in annualized revenue. Prediction market platform Polymarket has laid off employees and terminated several contractor agreements as part of a broader organizational restructuring, following competitive setbacks and growing pressure to strengthen its business operations. The New York-based company confirmed the workforce reductions on November 11, 2026, after an internal email notifying contractors of their termination circulated on social media.
The email indicated that certain agreements would end effective November 4 as part of a company-wide workforce reduction. Polymarket declined to disclose the number of affected employees or the percentage of its workforce eliminated. However, a person familiar with the restructuring told Reuters that contractors accounted for more than half of those affected. The restructuring comes as Polymarket faces increasing competition from Kalshi, which has overtaken the platform in monthly trading volume despite Polymarket’s earlier dominance of the prediction market industry.
Leadership Overhaul Follows Competitive Setbacks
The workforce reductions accompany substantial changes to Polymarket’s management structure as founder Shayne Coplan seeks to strengthen operational discipline. In September, the company appointed Warren Jenson, a former Amazon finance executive, as its first chief financial officer. It also recruited executives with experience at Goldman Sachs, DoorDash and Robinhood. Former Uber executive Travis VanderZanden joined as chief growth officer, replacing former chief marketing officer Matthew Modabber, who departed in October. According to Front Office Sports, the restructuring particularly affected marketing, creative production and growth-related positions, alongside reductions involving external contractors.
Reports circulating after the November U.S. midterm elections claimed that Polymarket had dismissed approximately 30% of its workforce. However, sources familiar with the company disputed those estimates, while Polymarket declined to provide an official headcount. The company described the personnel changes as part of preparations for its next expansion phase, emphasizing that restructuring had also involved new appointments and hiring. Despite the reductions, Polymarket reported that annualized revenue exceeded $1.8 billion in November, compared with more than $1 billion in June. The figures suggest continued business growth, although annualized revenue represents a projected run rate rather than completed full-year revenue.
Kalshi Competition and Regulatory Scrutiny Intensify
Polymarket’s restructuring coincides with rapid expansion by rival prediction market operator Kalshi, which has strengthened its distribution network through commercial partnerships and sports-related trading opportunities. Kalshi recently secured $1 billion in financing from investors including Sequoia Capital and Wellington Management, reportedly reaching a valuation of $40 billion. Polymarket is also pursuing additional financing, with reports indicating that a proposed $1 billion investment round led by 1789 Capital could value the company at approximately $21 billion. Neither valuation establishes profitability, and Polymarket has not publicly disclosed comprehensive financial statements. Regulatory scrutiny remains another challenge. The Commodity Futures Trading Commission is reportedly investigating whether Polymarket violated a 2022 settlement requiring restrictions on U.S. customers accessing its offshore platform.
The company operates a separate U.S.-regulated exchange alongside its international blockchain-based marketplace. The investigation does not establish wrongdoing, and no new enforcement finding has been announced. Polymarket’s restructuring therefore reflects efforts to reorganize management and operations during a period of business expansion, intensifying competition and continuing regulatory uncertainty. Its longer-term implications will depend on whether the company can convert revenue growth into sustainable market share and operational performance.
