Twitch is reportedly preparing to lay off another 35% of it’s employees(around 500 people), reported Bloomberg, citing people familiar with the matter.
This comes after the company had cut 400 jobs last year and stopped business in South Korea. Despite being acquired a decade ago, Amazon cannot make Twitch profitable, even though the platform is paying creators to hold on to them.
Twitch’s Fresh Round of Layoffs
Twitch is preparing for a fresh round of layoffs after dumping hundreds of employees last year. Citing people familiar with the matter, Bloomberg says Twitch may soon cut 35% of it’s workforce, which equals around 500 employees.
As we wait to see which employees will be affected this time, a formal confirmation may arrive sometime this week, reported Bloomberg. This move could be the possible result of Twitch failing to show profits despite being backed by Amazon for a decade.
Every month, Twitch runs around 1.8 billion hours of live video content on it’s platform. And the cost to maintain this infrastructure is enormous, especially in South Korea, which led to the shutdown of business in that region. Twitch’s CEO had earlier said the costs are ten times more expensive in Korea than in other areas.
This aside, several key executives left the company late last year, including it’s chief product officer, chief customer officer, chief revenue officer and chief content officer. Well, the current CEO joined the company less than a year ago, replacing Twitch co-founder and CEO Emmett Shear in March of 2023.
Though they attempted to boost profitability, like reworking on advertising and paying streamers to stick on, Amazon is growing hopeless. The parent company has been on a cost-cutting drive since the pandemic, which laid off 27,000 employees over the last two years, including 9,000 in 2023.
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