- Digital sports media startup Overtime laid off 30 employees on March 25, according to a memo seen by Business Insider.
- Overtime has raised $35.3 million in seven rounds of funding to date. Company investors include Andreessen Horowitz, Spark Capital, and NBA players Kevin Durant and Carmelo Anthony.
- According to internal documents seen by Business Insider, Overtime only agreed to give laid-off employees one month of health insurance if they signed a separation agreement that required confidentiality and non-disparagement of the company.
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The company that strove to be the “ESPN for Generation Z” just laid off more than two dozen workers without severance pay in the thick of the worsening coronavirus pandemic.
Overtime, a digital sports media startup covering high school athletics, laid off 30 employees, or 20% of its staff, on March 25 over email, the company confirmed to Business Insider.
An internal document seen by Business Insider reveals that the company offered one month of health insurance only to employees that signed a nondisclosure agreement about the layoff. Employees did not receive additional payment as part of any severance package.
Overtime CEO Dan Porter said in an internal memo that the economic recession caused by the novel coronavirus had led to less revenue, and he cited the cancellation of upcoming events it typically makes money from, such as the McDonald’s All American Game for high school basketball players. Overtime has told Business Insider that it has not lost money from that canceled McDonald’s All American Game.
Overtime has raised $35.3 million in seven rounds of funding, including a $23 million Series B funding round in February 2019, according to Crunchbase.
Overtime’s investors include Andreessen Horowitz, Spark Capital, and Sapphire Ventures, as well as NBA players Kevin Durant and Carmelo Anthony.
Porter told Business Insider in 2017 he planned to turn Overtime into the a sports media juggernaut like ESPN, but one that catered to a young, tech-savvy audience. “We will launch a full-fledged news website,” he told Business Insider’s Nathan McAlone at the time. Overtime has produced 40 programs with original content it produces and distributes itself.
“Like all businesses across the world, we made this move in anticipation of macroeconomic changes and to best position the company for the future,” company spokesperson Kayla Kaplan told Business Insider.
This story has been updated to include Overtime’s comments regarding the canceled McDonald’s All American Game and to change a reference to a “nondisclosure agreement” to “a separation agreement that required confidentiality and non-disparagement of the company.”