Twitch Announces Significant Layoffs, Reducing Workforce by 35%
Twitch, the popular live-streaming platform, has confirmed plans to lay off about 500 employees, amounting to 35% of its workforce. This decision, as reported first by Bloomberg and later confirmed in a blog post by Twitch, comes amidst ongoing cost-cutting efforts and restructuring within the tech industry.
CEO Dan Clancy expressed the difficulty of the decision, acknowledging the vital role each employee has played in building the platform's community. Despite Twitch's financial strength, Clancy noted that the organization was operating at a scale too large for its current business size. Last year, Twitch paid out over 1 billion USD to streamers, yet it finds its workforce sized for a more optimistic future business growth, not reflective of the current situation.
This move aligns with broader trends in the tech sector, as companies resize their organizations based on conservative growth predictions. Clancy emphasized the necessity of the layoffs to ensure Twitch's sustainable service to streamers without hindering their career support on the platform.
These layoffs follow the departure of former CEO Emmett Shear last March and the subsequent appointment of Dan Clancy. They also coincide with previous cutbacks, including 400 layoffs last year and Amazon's reduction of its Crown Channel and Game Growth teams. Additionally, Twitch recently announced its closure in South Korea, citing high operational costs.
The video game industry continues to face a wave of layoffs, mirroring the trends seen in 2023, with companies like Unity also preparing for significant workforce reductions.
Source: Twitch