Key Highlights
- Polymarket confirmed an internal reduction in force that ended one contractor agreement effective November 4, contradicting online claims of a 30% workforce reduction.
- The company is reorganizing under new leadership as it expands, while preparing for a possible public listing as early as 2027.
- Polymarket’s revenue run rate has exceeded $1.8 billion, but the prediction market platform still trails Kalshi and faces regulatory scrutiny.
Polymarket Confirms Limited Contractor Layoffs Amid Wider Online Claims
Polymarket confirmed on November 11 that a screenshot circulating online showed a genuine company email. The message described the action internally as a company-wide reduction in force and ended one contractor agreement effective November 4.
Posts shared widely online portrayed the cuts as much broader. A November 4 post claimed Polymarket had eliminated 30% of its workforce after the midterm elections. Another post, published November 7, repeated that allegation and said “laptops, email, and building access were cut on the spot.” However, a source said the email was sent only to contractors and did not apply to full-time employees.
Leadership Changes Drive Polymarket Reorganization
Polymarket said the workforce changes were part of a broader reorganization as the company grows. “As we’ve grown and brought on new leadership, we’ve reorganized to set the company up for its next phase of growth, which has meant a lot of new hires, changes in personnel and letting some people go,” a spokesperson said in an emailed statement.
The marketing department experienced the most significant cuts. Matthew Modabber, Polymarket’s former chief marketing officer and a longtime friend of CEO Shayne Coplan, was fired in October following an internal investigation.
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Modabber’s team was accused of creating a fake website designed to resemble Polymarket. Paid influencers allegedly used the site to film videos depicting trades that had never taken place. Coplan initially opposed Modabber’s dismissal, but the board reportedly concluded that Modabber could damage the company’s plans to pursue a public listing.
Former Uber executive Travis VanderZanden has since assumed responsibility for marketing as Polymarket’s chief growth officer. The company has also added several senior executives. In September, Polymarket appointed former Amazon CFO Warren Jenson as its first finance chief. It hired former Goldman Sachs executive Lisa Mantil to attract more major financial firms and former Meta executive Malea Otranto to lead trust and safety.
Polymarket Trails Kalshi Despite Accelerating Revenue
Polymarket was previously the largest prediction market platform, but rival Kalshi has since taken the lead. Kalshi processed 73% of all prediction market trading in the third quarter, compared with about 18% for Polymarket, according to a Predicted report cited by Front Office Sports.
Kalshi has also secured major commercial agreements, including one connected to the FIFA World Cup. In late October, the company raised $1 billion in a funding round led by Sequoia and Wellington, increasing its valuation to $40 billion.
Polymarket told CNBC on November 10 that its revenue had reached an annualized pace of more than $1.8 billion, up from more than $1 billion in June. Most of the increase came from its regulated US platform, which reopened in December 2025 after almost four years outside the American market.
Polymarket is also nearing a separate $1 billion fundraising round led by Donald Trump Jr.’s 1789 Capital. Sources told Front Office Sports that the deal would value the company at approximately $21 billion.
Intercontinental Exchange, the parent company of the New York Stock Exchange, has invested more than $1.6 billion in Polymarket. It held approximately 14% of the company, valued at about $2 billion as of September 30, according to an SEC filing. “It’s not like a struggle for cash or something,” one source said about the layoffs.
Regulatory and Legal Challenges Remain
The reorganization comes as Polymarket prepares for a possible stock market listing as early as 2027. Two sources said the company wants to strengthen its operations and governance before pursuing an initial public offering.
Polymarket nevertheless remains under scrutiny from US regulators. Reuters reported that the Commodity Futures Trading Commission is investigating whether the company violated a 2022 agreement requiring it to prevent US users from accessing its principal overseas platform.
Polymarket is based in New York and operates a separate company registered in Panama. Its international platform has also drawn criticism over the types of events available for betting. The company recently removed a market that allowed users to predict whether men accused of raping a Cornell University student would face felony charges.
Other cases have added to concerns around prediction-market activity and the use of private information. In April, the US Justice Department charged a soldier accused of using confidential information to bet on the capture of Venezuelan President Nicolás Maduro. In May, prosecutors charged a Google engineer who allegedly made more than $1.2 million betting on which person would be the most searched individual of 2025.
Why This Matters
Polymarket’s contractor reduction appears to be part of a larger effort to reshape the company as it scales, adds senior executives and considers a potential public listing. The changes are taking place despite strong revenue growth and substantial investment from Intercontinental Exchange.
The company also faces a more competitive prediction-market industry, with Kalshi controlling a much larger share of trading and attracting major capital. At the same time, regulatory questions involving access to Polymarket’s overseas platform and concerns about the markets offered to users could affect its expansion plans and preparations for an eventual listing.
Frequently Asked Questions
Did Polymarket lay off 30% of its workforce?
The available information does not support that claim. Polymarket confirmed an internal reduction in force that ended one contractor agreement, while a source said the email applied to contractors rather than full-time employees.
Why is Polymarket reorganizing?
Polymarket said it is reorganizing as the company grows and brings in new leadership. The changes include senior hires in finance, growth, financial partnerships, and trust and safety.
What challenges does Polymarket face?
Polymarket trails Kalshi in prediction-market trading share and faces regulatory scrutiny over whether it complied with a 2022 agreement concerning US access to its overseas platform. It is also reviewing its operations while preparing for a possible stock market listing as early as 2027.
