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According to sources cited by Bloomberg News on Tuesday, Amazon’s streaming platform, Twitch, is reportedly poised to reduce its staff by 35%, amounting to roughly 500 employees. The anticipated announcement of these cuts could materialize as early as Wednesday.
Profitability Challenges Persist:
Despite Amazon’s acquisition nine years ago, Twitch continues to operate at a deficit, as highlighted by the Bloomberg report. The platform’s business remains unprofitable, prompting measures to optimize operations and costs.
Twitch CEO Dan Clancy revealed in December plans to cease operations in South Korea by February due to the burden of high operational expenses and network fees, further indicating the platform’s concerted efforts to streamline its global footprint.
Previous Workforce Adjustments:
This impending reduction follows a downsizing initiative in March last year, where Twitch laid off over 400 employees.
This action came after the company’s user and revenue growth fell short of anticipated targets, signifying ongoing challenges in meeting performance expectations.
Twitch’s Response and Pending Announcement:
Twitch has not yet responded to requests for comments from Reuters regarding the reported workforce reduction.
However, these substantial cuts underscore the platform’s strategic overhaul amid persistent profitability struggles and the need to reposition its operational framework.
