Twitch CEO Dan Clancy has confirmed on the Twitch blog that the company is undergoing layoffs. Clancy stated that over the past year, Twitch has been striving to build a more sustainable business for longevity. Despite efforts to cut costs and increase efficiency, it’s apparent that the organization remains larger than necessary for its current business size.
Clancy mentioned that Twitch, like many tech companies, is adjusting its workforce size based on its current business scale and conservative growth forecasts.
According to a Bloomberg report, Twitch is set to lay off about 500 employees this month. This information comes from sources familiar with the company’s plans, and an official announcement might be made soon. Bloomberg attributes these layoffs to concerns over losses and recent executive departures.
These layoffs are not the first for Twitch; the first round occurred last March, resulting in 400 job losses as part of Amazon’s broader 9,000 job cut initiative. Another round took place in October, focusing on Twitch’s customer experience organization as the company transitioned to outsourcing.
Despite Twitch being an Amazon subsidiary, the company’s executives have emphasized the need for Twitch to stand as a “sustainable, viable long-term business.”
