Twitch, the popular live-streaming platform, is facing a major workforce reduction, with CEO Dan Clancy confirming the layoff of approximately 500 employees.
Twitch mass layoffs: Here’s why the streaming company cut 35% jobs
This significant cut represents about 35% of the company’s staff, marking a drastic shift in its operational strategy.
Clancy explained in a blog post that this move was a difficult but necessary step towards building a more sustainable business model for Twitch.
“Our service exists to empower communities to create, together, and every single one of you has played a vital role in fostering our community and furthering that mission,” Clancy stated.
He acknowledged the impact of these layoffs, not only on the workforce but also on the broader Twitch community.
The CEO pointed out that despite Twitch’s strong business performance, with over $1 billion paid out to streamers last year, the company’s size was not in alignment with its current business scale.
Clancy highlighted the need to adjust the organisation’s size based on realistic growth predictions rather than optimistic expectations.
This restructuring, Clancy explained, aims to ensure Twitch’s ability to continue supporting streamers and their careers on the platform without compromising its financial stability.
These layoffs come after a year of cost-cutting measures and efficiency improvements.
However, Clancy noted that the organisation remained “meaningfully larger” than necessary for its current business size.
“This decision, while incredibly difficult and painful, is necessary to ensure that we can continue to serve our streamers sustainably,” Clancy added.
The change in leadership at Twitch has also been a significant factor in this decision. Former CEO Emmett Shear stepped down last March, with Clancy, the former vice president of creator and community experience, taking over the role.
Twitch’s layoffs are part of a broader trend in the tech industry, with Amazon, Twitch’s parent company, also announcing substantial job cuts across various divisions.
Twitch’s financial troubles have been brewing for some time.
The platform, known for revolutionizing live streaming, particularly in the gaming community, has faced challenges in sustaining its rapid growth post-pandemic.
As people returned to offline activities, the surge in online engagement seen during lockdowns began to normalize. This shift, coupled with a challenging macroeconomic environment, has forced Twitch to recalibrate its operational scale
