Amazon.com Inc.’s livestreaming site Twitch is set to cut 35% of its workforce, or about 500 employees, according to people familiar with the plans, the latest in a series of job cuts there.Thank you for reading this post, don't forget to subscribe!
The cuts, which could be announced as soon as Wednesday, come after concerns over losses at Twitch and several top executives leaving the company in the span of a few months. A Twitch spokesperson declined to comment.
Company executives have said that despite Twitch’s reliance on Amazon’s infrastructure, running a large-scale website supporting 1.8 billion hours of live video content a month is simply too expensive. In December, Twitch chief executive Dan Clancy said the company would cease operations in South Korea, where costs are “prohibitively expensive”, according to a blog post he wrote.
Twitch has increased its focus on advertising in recent years. Nine years after the company was acquired by Amazon, the business remains unprofitable, according to the people, who asked not to be identified discussing private information.
In the final months of 2023, several top executives announced their departures, including Twitch’s chief product officer, chief customer officer, and chief content officer. Twitch also lost its chief revenue officer, who worked at Twitch from within Amazon’s advertising unit.
“It’s always bittersweet when talented leaders move on to pursue new opportunities,” a Twitch spokesperson said at the time. “We’re incredibly grateful for their contributions to Twitch and our community, and wish them all the best.” Let’s give.”
All the former employees declined to comment.
Since taking office in March 2023, Clancy has been on a cross-country charm offensive to improve relationships with gaming celebrities who live stream on Twitch. Many of them were angry with Twitch’s original approach to ads, which the company reworked after criticism. Streamers have praised Clancy’s willingness to listen to their concerns after years of complaints that the service was out of touch with its users.
However, the new chief has struggled to curb losses. Twitch conducted two rounds of layoffs last year, cutting more than 400 positions, part of broader job cuts at Amazon.
The online retail giant launched its largest-ever corporate job cuts in 2022, expanding to 27,000 positions across the company. This continued in October with a new round of cuts at its music division, which includes the company’s audio streaming platform and digital storefront for songs.
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