Amazon’s livestreaming platform Twitch is set to cut about 35% of its workforce, amounting to approximately 500 employees, as confirmed by Twitch CEO Dan Clancy in a blog post on Wednesday. The decision comes as a part of the company’s efforts to address financial losses and streamline its operations following the departure of several top executives.
Despite previous cost-cutting measures, the company continues to grapple with significant financial challenges. Twitch, known for its extensive live video content, has struggled to achieve profitability even after being acquired by Amazon over nine years ago. The platform, which supports 1.8 billion hours of live video content monthly, faces substantial operational costs, despite leveraging Amazon’s infrastructure.
In a bid to sustain its services without compromising support for content creators, Twitch has been compelled to make the difficult decision to downsize its workforce. Clancy emphasized the necessity of this move to ensure the long-term viability of the platform, emphasizing the company’s commitment to sustaining streamers’ careers on Twitch.
Throughout 2023, Twitch witnessed the departure of several key executives, including the chief product officer, chief customer officer, and chief content officer. Additionally, the platform’s chief revenue officer, who was part of Amazon’s Ads unit, also left the company. While these former executives refrained from commenting on their departures, a Twitch spokesperson expressed gratitude for their contributions and wished them well in their future endeavors.
Despite the challenging circumstances, Twitch disclosed that it had disbursed over $1 billion to streamers in 2023, underscoring its ongoing commitment to supporting content creators. The company has also intensified its focus on advertising and implemented substantial cost-cutting measures, such as ceasing operations in South Korea due to prohibitive expenses.
The recent layoffs form part of Twitch’s broader strategy to fortify its business operations and achieve sustainable growth. Clancy’s blog post emphasized the company’s dedication to ensuring its longevity and continued support for streamers, despite the painful implications of the layoffs.
As Twitch navigates this pivotal juncture, the company remains focused on charting a path towards financial stability and sustained support for its vibrant community of content creators.
