Amazon’s streaming platform, Twitch, is set to undergo a substantial downsizing, with plans to cut 35% of its workforce, equating to around 500 employees, according to sources familiar with the matter. The decision, which may be officially disclosed as early as Wednesday, comes as Twitch grapples with profitability challenges nearly a decade after its acquisition by Amazon.
Despite being a key player in the live streaming and gaming space, Twitch has struggled to turn a profit since becoming part of the Amazon ecosystem. The move to reduce its workforce is seen as a strategic realignment to address financial concerns and streamline operations.
Twitch CEO Dan Clancy had previously indicated in December that the company would cease operations in South Korea by February 2024, citing high operating costs and network fees as contributing factors.
The impending layoff announcement follows a significant downsizing last year, where Twitch let go of more than 400 employees in March. The decision was driven by a misalignment between user and revenue growth and the company’s expectations.
As Twitch navigates the challenges of the streaming landscape, these workforce reductions aim to reposition the platform for greater financial sustainability and operational efficiency.
