Amazon Layoffs: Tech giant lays off 35 per cent of Twitch staff, over 500 people rendered jobless

Twitch, Amazon’s live streaming platform, is reportedly set to reduce its workforce by 35 per cent, affecting around 500 employees, as part of a series of job cuts. Sources familiar with the plans indicate that the announcement could come as early as Wednesday. This move follows growing concerns over financial losses at Twitch and a string of departures by top executives within a short timeframe. Twitch, supporting a massive website with 1.8 billion hours of monthly live video content, faces significant expenses despite leveraging Amazon’s infrastructure. Twitch CEO Dan Clancy revealed in December the decision to cease operations in South Korea due to the prohibitively high costs in the region. Despite Amazon’s acquisition of Twitch nine years ago, the platform has yet to turn a profit. The company has been focusing on advertising in recent years, but financial challenges persist, according to anonymous sources. The platform experienced executive turnover in late 2023, including the departure of key figures like the chief product officer, chief customer officer, chief content officer, and chief revenue officer from Amazon’s Ads unit. Twitch spokespersons expressed gratitude for their contributions and well-wishes for their future endeavours. Dan Clancy, who assumed the role of CEO in March 2023, has been working to mend relations with gaming celebrities using Twitch. Despite positive feedback for addressing user concerns and reworking the platform’s ad approach, Clancy has faced difficulties in turning the company’s financial situation around. Twitch underwent two rounds of layoffs in the previous year, cutting over 400 positions, as part of broader job reductions at Amazon. Amazon, in 2022, initiated its largest-ever corporate job cuts, affecting 27,000 positions across the company. The trend continued in October with additional cuts in its music division, which includes the company’s audio streaming platform and digital storefront for songs. The impending reduction in Twitch’s workforce is seen as another step in Amazon’s ongoing efforts to optimize its operations and financial performance. (With inputs from agencies)