Amazon launched a series of layoffs impacting Prime Video, but its gaming division Twitch is also impacted. The streamer is reducing 500 other folks from their roles—an estimated one-third of team.
Twitch CEO Dan Clancy launched the layoffs this morning, with 500 other folks estimated to be round 35% of Twitch team. Bloomberg reported the platform was as soon as brooding about reducing team on Tuesday, with the corporate confirming the cuts in a lengthy put up on its net sites.
“I desired to ship a transient existing to let you know that we’ve made the tough decision to minimize the dimensions of our crew this day,” the present to the Twitch neighborhood begins. “At this point in time, we’re centered on communicating with our workers and offering them with clarity on how this impacts every of them.” Dan Clancy shared the inner memo sent to Twitch staffers asserting the layoffs.
“We peaceful accept as true with work to elevate out to rightsize our company and I be apologetic about having to fragment that we’re taking the painful step to minimize our headcount by correct over 500 other folks across Twitch,” the announcement reads. “This would presumably well maybe presumably be a truly laborious day. Our carrier exists to empower communities to draw, collectively, and each one of you has played a truly worthy position in fostering our neighborhood and furthering that mission.”
“Over the final yr, we’ve been working to possess a more sustainable industry so that Twitch will most seemingly be right here for the long poke and throughout the yr we now accept as true with reduce costs and made many choices to be more atmosphere pleasant. Sadly, despite these efforts, it has change into certain that our group is peaceful meaningfully higher than it wants to be given the dimensions of our industry.”
“Final yr we paid out over $1 billion to streamers. So whereas the Twitch industry stays solid, for a whereas now the group has been sized essentially based entirely mostly upon the assign we with any luck are waiting for our industry to be in three or more years—not the assign we’re this day.”
“As with many replace firms within the tech space, we’re no sizing our group essentially based entirely mostly upon the brand new scale of our industry and conservative predictions of how we are waiting for to develop within the long poke.”
Streaming giants struggled to correct themselves after advertising and marketing expend tanked in 2023. Spotify went thru three rounds of job cuts in 2023 by myself as it restructured its podcast division and reduce shows that remained vastly unprofitable gambles, admire Megan Markle’s podcast ‘Archetypes.’