Twitch Slashes Staff, 500 Employees Bracing for Job Loss

Twitch, the prominent streaming platform owned by Amazon, has disclosed plans to reduce its workforce by approximately 35%. This cut equates to a staggering 500 employees and marks a notable development in the gaming and tech industries.

Bloomberg's Revelation and Industry Trends

Bloomberg's Cecilia D'Anastasio broke the news, revealing that Twitch is preparing to unveil these workforce reductions imminently, possibly as early as this week. This announcement arrives on the heels of recent industry-wide workforce adjustments. Notably, game engine developer Unity declared a 25% reduction in its employee count as part of a broader company restructuring.

These layoffs are indicative of broader trends within the gaming and tech sectors. Over the past year, several companies in these domains have undergone substantial downsizing, affecting tens of thousands of workers. Twitch's impending workforce reduction follows a series of prior layoffs within its parent company. Amazon Games, a subsidiary of Amazon, underwent a workforce reduction of 180 employees in November, part of a larger downsizing initiative that saw 27,000 job cuts earlier in 2023.

Impact on Twitch and the Industry Landscape

Twitch itself experienced a significant impact from prior layoffs. The departure of Emmett Shear, the longstanding CEO of Twitch, in March 2023, coincided with a reduction of 400 employees, underscoring the turbulence within the organization. Additionally, the recent decision to withdraw from South Korea due to high operational costs further accentuates the challenges faced by the platform.

Should the reported layoffs materialize, Twitch will operate with approximately 930 employees, marking a stark decline from its workforce composition a year ago.