Amazon-owned Twitch to lay off 35% of workforce
Twitch, the live streaming platform owned by Amazon, is reportedly considering laying off approximately 500 employees. This amounts to a reduction of about 35% of its workforce. The decision comes as the company faces financial losses and a string of executive departures. Even with the backing of Amazon, the operational expenses involved in managing a vast website that hosts 1.8 billion hours of live video content each month have posed significant challenges for Twitch.
Twitch's struggles and executive departures
In 2023, Twitch faced a significant exodus of top executives, including the chief product officer, chief customer officer, chief content officer, and chief revenue officer. "It's always bittersweet when talented leaders move on to pursue new opportunities," a Twitch spokesperson said at the time. The company has struggled to turn a profit since being acquired by Amazon nine years ago, even with a greater emphasis on advertising.
CEO Dan Clancy's efforts and previous layoffs
Dan Clancy, who became Twitch CEO in March 2023, has been working to improve relationships with gaming celebrities who use the platform for streaming. These streamers have appreciated Clancy's willingness to address their concerns after feeling disconnected from the service for years. However, despite his efforts, Clancy has faced difficulties in reducing losses. Last year, Twitch underwent two rounds of layoffs that eliminated over 400 positions as part of broader job cuts at Amazon.
