Amazon-owned livestreaming site, Twitch, is reportedly set to undergo significant job cuts, with approximately 500 workers, or 35% of its staff, expected to be let go. The decision comes amidst concerns about losses at Twitch, as well as the departure of several top executives.
Running a large-scale website like Twitch, which supports a staggering 1.8 billion hours of live video content per month, comes at a hefty price, even with Amazon’s infrastructure support. This financial burden became evident in December, when Twitch’s CEO announced the cessation of operations in South Korea, citing prohibitively high costs.
Despite making efforts to boost revenue through increased focus on advertising, Twitch continues to struggle to turn a profit, even nine years after being acquired by Amazon. This lack of profitability has raised concerns and led to job reduction measures.
The situation at Twitch worsened in late 2023 when multiple top executives, including the chief product officer, chief customer officer, chief content officer, and chief revenue officer, departed from the company. Their exits marked a significant blow to the platform and its ability to retain key talent.
In an attempt to improve relations with gaming celebrities, who are an essential part of Twitch’s content creation community, CEO Dan Clancy has been actively addressing their concerns about the platform. This initiative reflects the company’s dedication to maintaining and nurturing its user base.
However, despite these efforts, Twitch has struggled to stem losses and has already undergone two rounds of layoffs in 2023, resulting in the elimination of over 400 positions. These job cuts highlight the challenges that the livestreaming giant faces in a fiercely competitive market.
It is worth noting that Amazon itself has also experienced corporate job cuts in recent years, including in its music division. This demonstrates the larger trend of streamlining operations and ensuring greater efficiency across Amazon’s various business units.
As Twitch looks towards the future, the company will need to find a sustainable business model that allows it to capitalize on its massive user base while also turning a profit. With the recent job reductions and changes in leadership, Twitch aims to position itself for long-term success in the highly competitive livestreaming industry.
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