Twitch Unveils Plans to Cut 500 Jobs, Reflecting a 35% Workforce Reduction

Twitch is gearing up for a significant downsizing, planning to cut around 500 jobs, constituting about 35% of its workforce, based on insights from sources within the company.

The impending cuts, potentially announced as early as Wednesday, arise amid concerns about Twitch’s financial losses and the departure of several key executives within a short period. 

Despite requests for comment, a Twitch spokesperson declined to provide any statements regarding these developments.

Managing a platform that supports an immense 1.8 billion hours of live video content monthly incurs substantial expenses, despite Twitch’s utilization of Amazon’s infrastructure, as stated by company executives. 

In December, CEO Dan Clancy addressed the company’s intention to discontinue operations in South Korea, citing exorbitant costs in a blog post.

Despite Twitch’s amplified focus on advertising in recent years, sources revealed the platform remains unprofitable even nine years post-Amazon’s acquisition.

Throughout the latter part of 2023, numerous high-ranking executives announced their departures, including the chief product officer, chief customer officer, and chief content officer. 

Additionally, Twitch witnessed the departure of its chief revenue officer, previously affiliated with Amazon’s Ads unit.

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Twitch Grateful for Departures

twitch-unveils-plans-cut-500-jobs-reflecting-35-workforce-reduction
Twitch is gearing up for a significant downsizing, planning to cut around 500 jobs, constituting about 35% of its workforce, based on insights from sources within the company.

Twitch addressed the departures, extending gratitude for the contributions made by the departing individuals and wishing them success, although the former employees declined to offer any statements on the situation.

Since assuming the role in March 2023, CEO Dan Clancy has actively worked to repair relationships with gaming influencers who rely on Twitch for streaming. 

Clancy’s efforts to revamp Twitch’s advertising strategy garnered appreciation from streamers who had previously criticized the platform’s approach. They commend Clancy’s responsiveness to user concerns, previously deemed unaddressed.

Despite these efforts, Clancy has faced challenges in curbing Twitch’s losses. Last year witnessed two rounds of layoffs totaling over 400 positions, part of broader workforce reductions within Amazon.

Amazon, as a whole, embarked on significant corporate downsizing in 2022, culminating in a reduction of 27,000 positions across various divisions. 

This downsizing continued in October with a subsequent round of cuts affecting its music division, encompassing the company’s audio streaming platform and digital song storefront.

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