Polymarket Cuts Staff and Contractors as Kalshi Pulls Ahead in Prediction Market Volume
Polymarket has laid off employees and ended several contractor agreements in a company-wide restructuring, with more than half of those affected being contractors. The company disputes reports that around 30% of its workforce was cut, even as rival Kalshi more than doubled its trading volume in the third quarter of 2026.
Written by CoinArticle’s AI Newsroom · from 2 cited sources. How we work
What Happened
Polymarket has laid off some full-time employees and ended several contractor agreements as part of a broader restructuring, with cuts concentrated in its marketing, customer experience and engineering teams. According to FOX Business, more than half of those affected were contractors. An internal email to contractors, circulated on X and reported by Reuters, said their agreements would end effective November 4, 2026, under a company-wide reduction in force.
The sources differ on scale. A CoinDesk report citing a source told Reuters that the cuts followed investor pressure on founder Shayne Coplan, but the company has not disclosed how many people were affected. Polymarket pushed back on reports that about 30% of its workforce had been cut, calling that figure inaccurate. Without a headcount from the company, the 30% claim cannot be verified, and neither can the size of the reduction.
Leadership and Stated Rationale
Polymarket said the move reflects preparation for its next phase of growth. The restructuring coincides with new senior hires: Warren Jenson joined in September as the company's first chief financial officer, and former Uber executive Travis VanderZanden joined earlier this year as chief growth officer. The company has not publicly tied the cuts to investor concerns, which is the link CoinDesk's source drew.
Market Context: Volume Up, Search Interest Down
The layoffs come as the prediction market sector is growing sharply in trading activity. According to a report by Predicted, the sector recorded $194.1 billion in notional trading volume in the third quarter of 2026, up 75% from the prior quarter and its largest quarter on record. Polymarket and Kalshi together accounted for 91% of that volume, but they moved in different directions.
Kalshi's volume more than doubled to $141.9 billion. Polymarket US grew 2.4 times to $17.3 billion and overtook Polymarket's international platform, which recorded $17.1 billion after a 36% decline. US-regulated exchanges accounted for 89% of total volume, up from 69% in the second quarter. Search demand for prediction markets fell 41% over the same quarter. Polymarket still led search interest in 43 US states, while Kalshi led in the remaining seven.
What to Watch
The reported headcount and the company's own denial remain unreconciled, and Polymarket has not published a figure. Whether the restructuring reflects a shift toward its US-regulated platform, which is now its larger venue, has not been stated by the company.
Why It Matters
For Traders
Polymarket US overtaking its international platform on volume means liquidity may be shifting toward the US-regulated venue, which traders should monitor before sizing positions across the two.
For Investors
Kalshi's rapid volume gains and Polymarket's internal restructuring suggest competitive pressure in prediction markets is intensifying, with US regulatory status becoming a central differentiator.
For Builders
With US-regulated exchanges now handling 89% of sector volume, teams building on prediction market infrastructure should prioritize compliance architecture and US market integrations.
This article is for information only and is not financial advice. Read the full disclaimer.
