From Fortune:

Amazon.com Inc.’s livestreaming site Twitch is expected to cut 35% of its staff, about 500 workers, following infrequent job reductions. The cuts come after notable losses at Twitch and the departure of several top executives. Twitch remains unprofitable, focusing on advertising to offset their costly live video content and infrastructure.

In 2023, Twitch announced plans to cease operations in South Korea due to expensive costs. The company has increasingly focused on advertising to boost revenues. Top executives have left as the company works to cut costs and hits its profitability goals.

Dan Clancy sought to mend relations with Twitch’s celebrities, streaming on the platform. Many of them grew frustrated with the platform’s original approach to ads and the lack of transparency with streamers. Still, Twitch has struggled with losses, leading to two rounds of layoffs, resulting in over 400 job reductions.

Amazon Inc. initiated corporate job cuts in 2022, which it later expanded to cover 27,000 positions. The online retail giant continued its job cuts with a new round in October 2023, as part of its music division layoff which impacted its audio streaming platform and digital song storefront.



Read more: Amazon set to lay off 35% of its staff at streaming platform Twitch, still unprofitable 9 years after its acquisition