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Amazon's Twitch Faces Layoffs: 500 Job Cuts Amid Financial Struggles and Executive Departures

In a move that has sent shockwaves through the gaming community, Amazon's live-streaming site Twitch is set to lay off approximately 500 employees, which accounts for about 35% of its workforce.

This comes as the latest in a series of job reductions at the company, following the departure of several top executives in recent months.

The cuts are expected to be announced on January 10th, and they come amidst concerns over financial losses at Twitch. Running a website that supports a staggering 1.8 billion hours of live video content per month is an expensive endeavor, despite Twitch's reliance on Amazon's infrastructure. The company's executives have acknowledged the financial challenges they face.

Twitch's CEO, Dan Clancy, recently revealed that the company would be ceasing operations in South Korea due to the exorbitant costs involved. Despite Amazon's acquisition of Twitch nine years ago, the business has remained unprofitable. The company has been focusing on advertising as a means to generate revenue, but it has yet to turn a profit.

The departure of several key executives in the final months of 2023 has further compounded Twitch's challenges. The company lost its chief product officer, chief customer officer, chief content officer, and chief revenue officer. However, a spokesperson for Twitch expressed gratitude for their contributions and wished them well in their future endeavors.

Since taking on the role of CEO in March 2023, Dan Clancy has been working tirelessly to repair relationships with gaming celebrities who rely on Twitch for their livelihoods. He has made efforts to address concerns raised by streamers regarding the company's approach to advertisements. Many streamers have praised Clancy's willingness to listen and engage with their feedback.

Despite these efforts, Twitch has struggled to stem its losses. The company underwent two rounds of layoffs in 2023, resulting in the elimination of over 400 positions. These job cuts were part of a broader downsizing initiative at Amazon, which saw the elimination of 27,000 positions across the company.

  • Amazon's Twitch is set to lay off approximately 500 employees, about 35% of its staff.

  • The job cuts come amidst concerns over financial losses at Twitch and the departure of several top executives.

  • Twitch CEO, Dan Clancy, has been working to address streamers' concerns and improve the company's approach to advertising.


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