Twitch Lays Off 35% of Its Staff! Is it GAME OVER for Them?!

Is Twitch DONE? They’ve just announced that they’ve cut another 500 employees after cutting 400 last year, effectively halving their staff. And the Twitch CEO says it’s STILL not enough. Then we talk about how they’ve backpedaled once again on their ever-changing nudity policy. How long until Amazon decides it’s time to pull the plug on Twitch like they did with comiXology?

Additional Context:
Twitch, the Amazon-owned livestreaming platform, is undergoing significant layoffs, with reports indicating that around 500 employees, which is approximately 35% of its staff, are being let go. This move comes after a year marked by various challenges for the company, including leadership changes, rising operating costs, and community discontent. The platform had previously laid off 400 employees after Twitch co-founder Emmett Shear stepped down and was replaced by CEO Dan Clancy. Additionally, Amazon had cut another 180 jobs late last year in related sectors.

The layoffs are part of Twitch’s efforts to build a more sustainable business. Despite its popularity and significant user growth since the pandemic lockdowns, Twitch has struggled to turn a profit. The platform’s pivot to prioritize ad revenue has not yielded the expected financial results. Operating costs for Twitch are notably high, mainly due to the expenses associated with supporting live stream content on such a large scale.

This recent round of layoffs is a continuation of the difficulties faced in the tech and gaming industries, where many companies have been forced to make tough decisions regarding their workforce to navigate economic challenges​​​​.

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