Tuesday, 16 September 2025
28.5 C
Singapore
28.3 C
Thailand
19.6 C
Indonesia
26.3 C
Philippines

Twitch confirms layoffs of 500 employees

Twitch announces the layoff of 500 employees, 35% of its workforce, as it struggles with profitability and creator engagement under CEO Dan Clancy's leadership.

Twitch, the live-streaming platform owned by Amazon, has announced a significant reduction in its workforce. The company confirmed the layoff of 500 employees, constituting 35% of its staff. Despite boasting over 35 million daily visitors, Twitch has yet to achieve profitability, leading to this drastic measure.

Twitch CEO announces layoffs

Dan Clancy, CEO of Twitch, expressed his regret in a recent blog post, stating the need to reduce the company’s headcount by over 500 people. He acknowledged the painful nature of this decision, emphasising that the size of the organisation exceeded the requirements of its current business scale. This marks Twitch’s second major reduction in staff within a year.

Amazon’s wider layoffs and ad strategy

This latest round of layoffs at Twitch coincides with Amazon’s decision to lay off hundreds of employees from Prime Video and MGM Studios. Amazon acquired Twitch in 2014 and has been making significant changes across its streaming services. The company announced plans to introduce advertisements into Prime Video, aiming to boost its streaming business.

Impact on Twitch since Clancy’s leadership

Since Clancy became CEO in March 2023, Twitch has seen over 900 layoffs, reducing the workforce to nearly half its original size. The recent announcement follows the closure of Twitch operations in Korea due to high costs. Clancy has defended these decisions as necessary for the long-term sustainability of the platform.

Twitch’s creator dynamics and revenue challenges

Twitch’s success hinges on its creators, yet the number of active streamers has declined. From a peak of nearly 10 million creators in January 2021, the figure has dropped to below 8 million in 2023. Twitch’s attempts to incentivise creators with a higher revenue share have limited scope, affecting only a tiny fraction of streamers.

The platform needs to work on monetising effectively, lagging behind competitors like YouTube in advertising revenue. While popular with viewers, Clancy’s strategy to reduce ads has yet to benefit streamers significantly.

Furthermore, Twitch faces challenges in content moderation and defining its audience, as seen in its inconsistent nudity and community safety policies.

This restructuring at Twitch highlights the evolving dynamics of the streaming industry and the challenges platforms face in maintaining profitability and creator engagement.

Hot this week

Cisco unveils agentic AI-powered Splunk Observability for real-time insights

Cisco introduces agentic AI-powered Splunk Observability, providing enterprises with real-time insights and stronger digital resilience.

Apple brings new health features to older Watch models

Apple adds hypertension notifications and Sleep Score to older Watch models with watchOS 26, expanding health tools beyond its newest devices.

Delta Electronics showcases future-ready building automation at MARVEX 2025

Delta Electronics showcases future-ready building automation solutions at MARVEX 2025, focusing on sustainability, efficiency, and smarter operations.

XPENG highlights AI-powered mobility at IAA Mobility 2025

XPENG unveils AI cars, flying vehicles, and robots at IAA Mobility 2025, with plans for Level 4 autonomous cars and a European R&D centre.

Best gaming keyboards 2025: Top picks for performance, comfort, and customisation

Discover the best gaming keyboards of 2025, rated for performance, wireless speed, customisation, and value.

Biwin unveils Mini SSD, a tiny storage device that could replace microSD cards

Biwin launches Mini SSD, a tiny yet powerful storage device that could replace microSD cards if industry standards are adopted.

Apple brings major upgrades to Powerbeats Pro 2 with iOS 26

Apple adds heart rate, fitness, and smart usability upgrades to Powerbeats Pro 2 with iOS 26, launching on 15 September.

UltraGreen.ai secures US$188 million anchor investment at US$1.3 billion valuation

UltraGreen.ai secures US$188 million anchor investment led by 65EP, Vitruvian, and August, valuing the firm at US$1.3 billion.

ConnectingDNA launches AI-powered DNA wellness marketplace in Singapore

ConnectingDNA launches the world’s first AI-powered DNA wellness marketplace in Singapore, offering personalised health insights and secure data protection.

Related Articles

Popular Categories