Topics
late
AI
Amazon
Image Credits:MARTIN BUREAU / AFP / Getty Images
Apps
Biotech & Health
clime
Cloud Computing
Commerce
Crypto
initiative
EVs
Fintech
fundraise
Gadgets
back
Government & Policy
Hardware
Layoffs
Media & Entertainment
Meta
Microsoft
concealment
Robotics
Security
societal
Space
Startups
TikTok
Transportation
speculation
More from TechCrunch
Events
Startup Battlefield
StrictlyVC
Podcasts
Videos
Partner Content
TechCrunch Brand Studio
Crunchboard
reach Us
Another one shot of layoff is collide with Twitch .
The Amazon - owned livestreaming weapons platform will cut 35 % of its faculty , or roughly 500 employees , Bloomberg reported Tuesday .
Twitch publicly confirmed the layoff in ablog post on Wednesday , which included a written matter of the email that was sent to staff informing them of the cuts . In the e-mail , CEO Dan Clancy articulate he was “ disappointed ” that the news show of the layoff was “ leaked ” before Twitch inform employees . He add up that the company had contrive to tell them on Wednesday morning , and was “ unfortunately not able to accelerate the timeline . ” He also stated that Twitch had paid out over $ 1 billion to streamers last twelvemonth , but the company ’s size did n’t match its growth .
“ Over the last year , we ’ve been working to build a more sustainable occupation so that Twitch will be here for the farseeing tally and throughout the year we have prune costs and made many decisiveness to be more efficient , ” Clancy continued . “ Unfortunately , despite these efforts , it has become absolved that our organization is still meaningfully larger than it necessitate to be render the size of our business concern … As with many other companies in the technical school space , we are now sizing our organization base upon the current scale of our business organization and materialistic prevision of how we expect to produce in the future tense . ”
Twitch did not immediately respond to TechCrunch ’s asking for comment .
It ’s the latest blow for the already beleaguered company , whichcut C of jobs last yearamid leadership changes , rising operating costs andcommunity discontent . curtly after Twitch conscientious objector - founder and longtime CEO Emmett Shear handed the reigns to Clancy , the companylaid off 400 employee . Amazon cut another 180 Job late last year when itshut down its Crown channel , the Amazon - tend Twitch programming , and shutter its Game Growth chemical group , which was hypothesise to help play Godhead commercialize themselves .
Twitch also recently announced plan toshut down service in South Korea — one of the largest esports markets in the worldly concern — over “ prohibitively expensive ” meshwork fees . In ablog postannouncing the closure , Clancy wrote that the company had been operating at a “ substantial exit ” in Korea , and that there was “ no path ahead ” to fly the coop sustainably .
Join us at TechCrunch Sessions: AI
Exhibit at TechCrunch Sessions: AI
Despite its popularity — the platform’susership has skyrocketedsince pandemic lockdowns several age ago — Twitch still struggles to turn a profit . Itspivot to prioritizing ad revenue , which has been a level of contestation among viewer and streamers , has not been fruitful ; Bloomberg reports that the society is still unprofitable nearly a decade after Amazon acquired it . Several executives left Twitch in December , admit its primary gross policeman .
Twitch faces steep operating cost to support livestream content at such a large scale . In a 2022blog Charles William Post , Clancy posit that each high - volume streamer on Twitch costs the society about $ 1,000 per month , cite Amazon Web Service ’s interactional video rates .
“ render high definition , low latency , always available live telecasting to well-nigh every turning point of the world is expensive , ” Clancy wrote .
Twitch to shut down in Korea over ‘ prohibitively expensive ’ web fee
Twitch ’s money guy wire mouth about the tax revenue split tilt and its monetisation long secret plan
