- Despite strong streaming growth, Twitch plans to cut 500 more jobs, over a third of its workforce.
- The Amazon-owned firm struggles with profitability and high cloud costs amid recent executive departures.
- Sweeping layoffs totaling over 20% of staff in a year signal uncertainty around Twitch’s leadership and business model sustainability.
Workforce reduction
Livestreaming giant Twitch plans to cut around 500 employees, equating to over a third of its workforce, Bloomberg reported this week. The latest layoffs deal another blow to the Amazon-owned platform, already roiled by recent labor reductions amid profit woes.
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Struggles amidst growth
In a memo confirming the 35% staff cuts, new CEO Dan Clancy cited efforts to build a “more sustainable business” better aligned with Twitch’s current scale. However the company remains unprofitable while struggling with high cloud costs despite strong creator ecosystem growth.
The cuts come after 400 job losses last spring and 180 more in late 2022 upon Amazon shuttering its Twitch Crown channel and gaming growth group. Twitch also recently abandoned the South Korean market over prohibitively expensive network expenses from video operations.
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Recent setbacks and unresolved issues
While boasting explosive pandemic-era gains in streamers and viewership, Twitch has frustrated audiences with its ineffective push into advertising revenue. Several executives, including the chief revenue officer, fled in December, pointing to instability.
The latest sweeping layoffs seem unlikely to assuage ongoing uncertainty around a platform’s leadership and economic viability, which is now axing over 20% of its team in under a year. Twitch must still confront sustainability challenges in a maturing streaming landscape.
