Twitch Says it Will Lay Off 400 Employees – On Monday, Twitch announced intentions to reduce its personnel, proving that even the growing streaming service is not immune to the layoffs that have rocked the tech industry over the past six months.
The layoffs will affect 400 employees and have been described as an effort to strengthen Twitch’s long-term business prospects. Amazon, the parent company of Twitch, plans to lay off 9,000 employees across sectors, including its AWS infrastructure and advertising departments.
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“Like many companies, our business has been impacted by the current macroeconomic environment, and user and revenue growth has not kept pace with our expectations,” new Twitch CEO Dan Clancy wrote. “In order to run our business sustainably, we’ve made the very difficult decision to shrink the size of our workforce.”
Clancy made the announcement on the business’s blog just days after longstanding Twitch CEO Emmett Shear announced his intention to leave the company to spend more time with his family. Clancy assumes the post of chief executive officer from his prior position as president, in which he oversaw the company’s daily operations.
While Twitch is still a platform on the rise, both in terms of its community and its tremendous cultural effect, the firm certainly struggled to achieve its early pandemic highs – a common pattern in the tech sector.
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As a result of people being confined to their homes, the number of hours spent in online spaces increased, and employment opportunities followed suit. Yet recent uncertain economic conditions are bringing IT companies’ new, sky-high metrics for success back down to earth, pushing many of them to scale back and reduce team sizes.
