Popular streaming service Twitch is reportedly preparing to lay off 35% of its workforce, which equates to about 500 workers, according to a Bloomberg report on Tuesday. The Amazon-owned platform, known for its focus on video gaming, could make the announcement regarding the job losses as early as Wednesday, as per sources familiar with the matter.
If the cuts are implemented, it would mark another round of layoffs for Twitch, following a previous reduction of 400 positions in March last year. This would mean that the company is on track to lose nearly 1,000 workers in less than a year.
Twitch CEO Dan Clancy had previously attributed the need for layoffs to challenging economic conditions and a lack of user and revenue growth. He stated that the company had to make the cuts in order to sustain its business.
It remains unclear if these same reasons will be cited for the anticipated layoffs, but more details are expected to emerge in the coming days. Additionally, Twitch recently ceased operations in South Korea, with Clancy citing the high cost of operating in the country as a significant factor.
Furthermore, several key executives departed from Twitch toward the end of last year. Despite efforts to increase revenue through advertising, the company has yet to turn a profit in the nine years since it was acquired by Amazon, according to sources cited by Bloomberg.
The video game industry as a whole faced challenges in 2023, with many companies downsizing their workforce. However, despite these difficulties, there is much to look forward to for gamers in 2024.
