Technology peripheralsIt IndustryAmazon-owned Twitch is expected to lay off more than 500 people, accounting for about 35% of its total workforceAmazon-owned Twitch is expected to lay off more than 500 people, accounting for about 35% of its total workforce
According to Bloomberg citing people familiar with the matter, Amazon’s live broadcast platform Twitch plans to conduct a layoff and is expected to lay off at least 500 people, which is equivalent to about 35% of its total employees. Twitch already had one layoff last year, when the number of layoffs reached 400. This labor cost reduction measure is to adjust the company's operating strategy.
According to reports, Twitch may officially announce layoff plans on January 10. Twitch has seen a number of senior executives leave in recent months, including its chief product officer, chief customer officer and chief content officer. Even the chief revenue officer in charge of Twitch's business, who is also the head of Amazon's advertising department, chose to leave.
According to Twitch executives, although Twitch relies on Amazon’s powerful infrastructure, operations are still very expensive. The 1.8 billion hours of live video content per month requires significant investment. In December last year, Twitch CEO Dan Clancy stated in a blog that the company would cease operations in South Korea due to excessive costs.
Twitch has ramped up its advertising efforts in recent years, but nine years after Amazon acquired it, the business is still not profitable.
This site noticed that Twitch experienced two rounds of layoffs last year, with a total of more than 400 layoffs. This is part of Amazon's overall layoff plan. This comes after Amazon made the largest layoffs in its history in 2022, cutting 27,000 jobs company-wide. These layoffs are aimed at optimizing the company's organizational structure and improving efficiency and profitability. This is also one of the strategic adjustments that Amazon has taken in response to market changes.
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