Twitch to Lay Off 500 Employees: A Third Round of Redundancies
In a significant blow, Twitch – Amazon’s streaming platform – has announced plans to let go of approximately 500 employees, which equates to around 35% of its workforce. This latest round of layoffs adds up to almost 1000 employees impacted in the past twelve months.
Background
The news follows Twitch’s decision to shutter its operations in South Korea due to escalating bandwidth costs and a series of controversies surrounding the company leadership. Reports suggest up to 500 employees will be affected by these redundancies as part of ongoing restructuring efforts.
Context: Global Downturn and Controversies
The past year has seen a decline in users consuming streamed content globally. Twitch’s reputation has also been tarnished by several scandals, such as the ‘adult content’ controversies, the emergence of Kick.com as a disruptive competitor, and modifications to Twitch’s partner and revenue programs.
Financial Struggles: Unprofitable for Nearly a Decade
Twitch, despite being a streaming-based tech giant, has yet to turn a profit almost a decade after Amazon acquired it for nearly $1 billion in 2014. The platform’s primary draw is its free-to-consume content for both streamers and viewers, which limits revenue streams to make it profitable.
Looking Ahead
For more insight into the gaming industry, explore our coverage on other news stories.
