Twitch, a streaming service owned by Amazon, confirmed recent reports that it will lay off around 35% of its workforce – equating to over 500 jobs – as part of a plan to resize the company, according to CEO Dan Clancy. In an internal email, which was later posted on the company’s blog, Clancy outlined that cuts were necessary to build a more sustainable business, stating that their organization was significantly larger than required given their current scale. The CEO also mentioned the company had been operating under optimistic expectations of where the business would be in three or more years, but this will now be adjusted to better align with current realities and more conservative growth predictions.
Clancy assured that these tough decisions are crucial for Twitch’s ability to serve its streamers without jeopardizing their career prospects on the platform. Affected employees will be informed about their severance packages with prominence given to saying goodbye to their colleagues as immediate layoffs are instigated. Reflecting on the news leak, Clancy expressed his disappointment and apologized for the anxieties it might have caused employees.
In related news, Twitch plans to host a live stream to discuss the impacts of their resizing strategy on streamers and audiences. This follows a series of layoffs last year, with further job losses in October due to outsourcing customer service operations. Despite these cost-cutting measures, Bloomberg reports suggest that Twitch is yet to make a profit since Amazon’s acquisition, which runs parallel to wider industry job losses, such as Unity’s recent layoff of 1,800 staff.
Leave a Reply