Twitch, the popular live-streaming platform for gamers, is set to cut about one-third of its workforce in a major organizational reshaping effort.
The Verge reports that Twitch, the leading gaming live-streaming platform, has announced a significant reduction in its workforce as part of a strategic realignment led by its parent company, Amazon. Twitch plans to lay off more than 500 employees, which represents about 35 percent of its total staff. The company said this move aims to streamline operations and allocate resources more effectively in line with the company’s current business trajectory.
The CEO of Twitch, Dan Clancy, commented on the situation stating: “I regret having to share that we are taking the painful step to reduce our headcount by just over 500 people across Twitch… This will be a very hard day.”
Twitch CEO Dan Clancy confirms 500 layoffs at the company pic.twitter.com/ly9fm7CIkR
— Dexerto (@Dexerto) January 10, 2024
Clancy noted that the firm paid out over $1 billion to streamers last year, but “while the Twitch business remains strong, for some time now the organization has been sized based upon where we optimistically expect our business to be in 3 or more years, not where we’re at today.” Clancy plans to host a livestream to discuss the implications of the new layoffs.
This year, Twitch had already reduced its workforce as part of broader layoffs at its parent company, Amazon. The company has also undergone significant internal restructuring, including the departure of several key executives. Additionally, Twitch has announced plans to cease operations in South Korea due to high network costs, reflecting the financial and operational challenges it faces.
Amazon also plans layoffs at its movie and TV streaming platform Prime Video as well as legendary Hollywood production studio MGM Studio. Senior vice president of Prime Video and Amazon MGM Studios, Mike Hopkins wrote in an email to staff: “We’ve identified opportunities to reduce or discontinue investments in certain areas while increasing our investments and focus on content and product initiatives that deliver the most impact.” He added that it was a “difficult decision to make.”
Read more at The Verge here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.