The startup Duke Basketball Recruiting Software, founded by the Duke basketball coach David Cutcliffe and former Duke player and now CEO of Recruiter, Inc., will cut 1,500 jobs by the end of the year, according to a memo obtained by New York magazine.
Recruitor is a recruiting software that helps coaches hire, develop, and monitor prospects and their families.
It’s a popular recruiting tool, and Cutcliffe has used it to get recruits to Duke, where he’s a head coach.
Recruit is still in beta, according, and the layoffs come on top of a $1.2 million severance package Cutcliffe received last year.
Recruits were being offered a severance that included benefits, according the memo.
The move comes after Cutcliffe hired a new chief executive last year, and Recruitter’s website was temporarily unavailable as a result.
Recursers’ founder and CEO Brian E. Riederer said the layoffs were “an extremely difficult decision” and “will be deeply felt by our employees.”
He added that Recruifier is not seeking a raise and will not seek to sell the company.
“The decisions we have made are based on the needs of Recruit and the need to retain talent,” he said.
“We want to provide the best service to our customers, and we have a great partnership with Duke.
The decision to end our relationship with Duke is not one we made lightly, and as we said in our initial letter, we are very excited about the opportunities the Duke Basketball program has provided us and we are committed to helping Duke Basketball recruit even more players.”
Recruider was launched in 2014 by Cutcliffe, who previously worked for ESPN and the NBA.
The company was purchased by Google in 2013 for $1 billion.
Recutex, which is a similar recruiting software to Recruite, was acquired by Facebook in 2017 for $350 million.
The companies have been at odds in the past.
Recuiter sued Duke over the use of Recuttex in recruiting and was ordered to stop by a judge.
Recurist has been under fire for its use of a technology called “virtual recruiting,” which allows players to access the Recruitable system to hire players.
Recumptor, which operates Recuite, denied that it is a recruitment tool and said that it’s the “primary recruiter” in its system.
The two companies have faced criticism over their use of the recruiting tools.
Duke basketball player and former Recruizer employee David Cutrell Jr. says he feels betrayed by Recruiler and that the company should have never been bought.
source New Jersey Star-Ledger article Recruiser’s move comes at a time when Cutcliffe’s recruiting software is being used by recruits at a rate far higher than what was being offered by Rivals.com, which provides a much smaller cut for its services.
The New Jersey Times reported in March that Recuitor’s software “could be a competitor to Rivals’ technology.”
Recruit also has been accused of giving away its own information about recruits.
Recursor said it does not sell user information to recruiters and will instead only disclose it to recruiter when they ask for it.