Twitch is at a loss, massive layoffs are coming

Twitch is at a loss, massive layoffs are coming

According to available information, Twitch plans to fire about five thousand of its employees this week. And this number is approximately 35% of the entire platform staff.

This information originates from a report by Cecilia D’Anastasio for Bloomberg. Twitch is currently undergoing significant staff reductions, joining the ranks of other companies in the gaming industry. As an influential platform owned by Amazon, Twitch has played a pivotal role in promoting gaming culture and serving as a valuable marketing tool for game developers. This has contributed to the remarkable expansion of the “game maker economy.”

It is important to mention that the layoffs were not officially acknowledged by Twitch until recently. However, according to the Bloomberg report, further details regarding these developments will be revealed in the near future.

The numbers are terrifying

The wave of layoffs will be huge, and the situation is aggravated by two other, similar “cleanses” that occurred in the Twitch office in 2023. After Dan Clancy became the new CEO (in April 2023), according to unofficial information, at the same time about 400 Twitch employees lost their jobs. Another wave of layoffs was noticed in October. In total, Twitch has lost nearly 1,000 employees over the past calendar year, according to online data. Then the management explained everything with “an unstable economy and an uncertain future.”

The Amazon-owned platform is far from the only company in the gaming industry that is facing serious difficulties. Issues like these in eSports are widely known, and there seems to be a general contraction in the gaming industry overall.

Massive layoffs in every corner of the industry are deeply concerning, especially when compared to the absurd profits it generates. Fans and workers simultaneously hoped that everything would end in 2023 and that this would not happen again. However, with news like this, it looks like the gaming industry’s terrible year will continue into this year.

Twitch CEO actually confirmed the information

Dan Clancy finally decided to explain why the company decided to hire so many employees. As expected, the CEO simply confirmed the fact that the platform was unprofitable, and such a step was simply a necessary measure.

“We must control the size of the company in order to survive in the market for a long time. We have a very important mission – Twitch should exist not only today, tomorrow, but also in 50 and 100 years. Our job is to manage the platform in a way that allows it to thrive.

Well, the reasons are quite logical and understandable – the staff was too bloated from the very beginning. And when they realized it, it was time for optimization.

“The point is that we were bigger than we needed to be. We must manage the company based on what level we are at now. Let me be honest, we are not making a profit at the moment. While Twitch still has enough resources to continue operating, we as a company cannot do as much as we could previously.

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