Twitch will soon be laying off 500 employees, which constitutes a significant 35% of its workforce. The job losses were confirmed in a blog post by Twitch, following initial reports by Bloomberg.
CEO Dan Clancy addressed the layoffs, stating, "This will be a very hard day. 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."
Many of you may be questioning the reasons behind this. In the past year, we have been working towards creating a more sustainable business for the long-term success of Twitch. We have made cost-saving decisions and streamlined operations to become more efficient," the executive stated. "Yet, despite our efforts, it has become evident that our organization is larger than necessary for the current size of our business. Last year, we paid out over $1 billion to streamers. While the Twitch business remains strong, our organization has been sized optimistically for where we expect to be in 3 or more years, rather than where we actually are today.
Like other tech companies, we are now adjusting our organization to better match the current scale of our business and making conservative predictions for future growth. This decision, although difficult, is essential to ensure that we can continue to support our streamers sustainably without impacting their ability to thrive on Twitch. We understand the passion that many of you have for the Twitch community and appreciate the hard work you have dedicated to serving our streamers."
After 16 years with the company, former CEO Emmett Shear stepped down in March, with former vice president of creator and community experience Dan Clancy taking over as CEO. Twitch also laid off 400 employees during the same period. Amazon, which owns Twitch, experienced similar layoffs, including 180 employees from its Crown Channel and Game Growth teams in November 2023. Twitch recently announced that it would be shutting down in South Korea in February 2024, with Clancy citing the prohibitive cost of operating the streaming service in the country.
Layoffs in the video game industry are still prevalent in the new year following a challenging 2023 for developers. Unity is also set to reduce its workforce by 25%.
Editor's P/S
As a passionate fan of Twitch, I am deeply saddened by the news of the latest round of layoffs. It is disheartening to see such a significant portion of the workforce being affected, especially considering the vital role they have played in fostering the Twitch community. The dedication and hard work of these employees have been instrumental in creating a platform that empowers streamers and brings joy to millions of viewers worldwide.
While I understand the need for cost-saving measures and streamlining operations to ensure the long-term sustainability of Twitch, it is crucial to recognize the impact these layoffs will have on the individuals involved. The passion and commitment of the Twitch team have been evident in the platform's growth and success, and it is essential that the company provides support and resources to those affected during this difficult transition.
