Friday, 7 February 2025
30.6 C
Singapore
36.3 C
Thailand
20.8 C
Indonesia
25.9 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

US tariffs: How Trump’s trade policy is impacting prices and businesses

Trumpโ€™s new tariffs on Canada, Mexico, and China could raise prices on electronics, food, and clothing, affecting consumers and businesses.

Global data leaders to increase AI investments despite challenges in GenAI adoption

APAC data leaders are driving AI investments in 2025 despite challenges in GenAI adoption, focusing on data management and employee training for ROI.

OpenAI unveils a refreshed brand identity

OpenAI has unveiled a new logo, typeface, and colour palette, aiming for a more human touch in its design while blending AI with creativity.

Windows 11 introduces major MIDI improvements with MIDI 2.0 support

Microsoft updates Windows 11 with major MIDI 2.0 support and other new features to enhance the music production experience.

SECO partners with impact.com to boost Senheng appโ€™s growth through affiliate marketing

SECO partners with impact.com to scale the Senheng app through affiliate marketing, aiming for growth, better ROI, and personalised consumer engagement.