From NASDAQ Inc.:

Amazon-owned live streaming site, Twitch, will downsize its workforce by 35%, cutting around 500 employees, CEO Dan Clancy announced. The move comes as the business struggles to turn a profit.

Twitch employees in the U.S., Brazil, Canada, Mexico, and Singapore are affected by the layoffs, which Clancy says are necessary to align the company’s size with its current business scale and growth predictions.

The San Francisco-based company laid off 400 employees last year due to the impact of the “current macroeconomic environment.” Twitch has struggled to make a profit for the past nine years, despite support from its parent company, Amazon.

In February 2024, Twitch will exit the South Korean market due to high operating costs, even after implementing cost-cutting measures. The company’s struggle to turn a profit has led it to make this difficult decision. Twitch recently changed its policy on splitting subscription revenue with streamers, reducing their share to 50%.

Established in 2011, Twitch was acquired by Amazon in 2014 for $970 million. Despite the challenges it faces in becoming profitable, the company continues to be a major player in the live streaming market.



Read more: Twitch CEO Dan Clancy Announces Layoff As Business Is Not Profitable