Twitch will lay off 35% of its employees
By ForGeeks Popular streaming service Twitch is set to lay off 35% of its staff — about 500 people, — according to a Bloomberg report published Tuesday. The Amazon-owned platform, which focuses on video games, could announce the staff cuts as early as Wednesday, people familiar with the matter told the publication. The cuts, if confirmed, would follow a round of layoffs last March that affected 400 positions, meaning Twitch could lose nearly 1,000 employees in less than 12 months.
The cuts, if confirmed, would follow a round of layoffs last March that affected 400 positions, meaning Twitch could lose nearly 1,000 employees in less than 12 months.
Twitch CEO Dan Clancy said at the time that the business had been affected by difficult economic conditions, with user and revenue growth not meeting the company’s expectations. So the company was forced to make cuts «to run the business sustainably» — Clancy said. It’s not yet clear whether the same reasons will be given for the next round of layoffs, but all should become known in the coming days.
It’s not yet clear if the same reasons will be given for the next round of layoffs.
Another indication of the pressure on the company was Twitch’s departure from South Korea last month. Clancy called the cost of operating in that country «prohibitively expensive» despite the fact that the company has made «significant efforts» to reduce those costs. In addition, several key executives left Twitch at the end of last year.
A number of key executives have left Twitch.
Twitch has been trying to boost revenue by increasing its focus on advertising on the platform, but in the nine years since Amazon acquired the streaming company, the business has never turned a profit, according to Bloomberg’s sources. In the broader video game industry, companies large and small had a tough year in 2023, with many downsizing. But despite the challenges, gamers have a lot to look forward to in 2024.
And despite the challenges, gamers have a lot to look forward to in 2024.
