Twitch Lays Off 500 Employees to Shrink Bloated Workforce
Twitch confirms it cuts 500 jobs, or 35% of its workforce, as CEO Dan Clancy admits the organization outgrows its current business scale. The layoffs mark another major setback for the struggling livestreaming platform.
Twitch lays off 500 employees, reducing its workforce by 35% as it attempts to build a more sustainable business. CEO Dan Clancy shares an internal email explaining that the company remains significantly larger than its current business scale requires, despite previous cost-cutting efforts throughout the past year.
Clancy expresses disappointment that Bloomberg leaks the news before Twitch informs its staff directly. He highlights that the platform pays out over $1 billion to streamers annually, but conservative future growth predictions force the company to align its organizational size with its actual operations.
These severe cuts add to a series of recent setbacks for the Amazon-owned platform, which already eliminates hundreds of jobs last year and shuts down operations in South Korea over prohibitive network fees. Despite massive user growth since the pandemic, Twitch continues to struggle with profitability as its push for increased ad revenue fails to solve its financial woes.