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Hard blow, Twitch must lay off 500 employees

© Twitch/Lemon squeezer

Ah, the new year! It seems that Twitch wanted to offer renewal to its employees for 2024. In the coming days, the Amazon-owned company will lay off 35% of its payroll. Enough to start the year off on the right foot… By laying off more than a third of its employees, Twitch is giving up on nearly 500 people. In 2023, the platform suffered a wave of layoffs with 400 people let go in recent months.

While Twitch broadcasts more than 1.8 billion hours of live video each month and establishes itself as an essential platform for many users, the costs weigh too heavily on its shoulders. Nearly a decade after its acquisition by Amazon, Twitch is still not profitable. We must therefore make drastic decisions for the live video streaming service.

Twitch, in an impasse ?

Broadcasting so many hours of live video is rather expensive for Twitch. The platform must spend considerable sums of money to ensure the proper functioning of its service. Last month, it explained that it would end its activities in Korea from February 27, 2024 in the face of “prohibitive operating costs”. After several efforts to reduce these expenses, Twitch apparently has no other choice.

This new wave of layoffs would be necessary for the platform to stay the course. But with nearly 1,000 employees dismissed in one year, the figure is not at all reassuring. And the year has only just started. These departures are part of a larger-scale plan by Amazon. The parent company of Twitch intends to let go of 9,000 employees, all branches combined. Since 2022, no less than 27,000 people have been laid off by Amazon, directly or indirectly.

However, Twitch is doing its best to replenish the coffers. In this sense, the platform relies heavily on advertising. And this has the gift of annoying more than one user. Also, in 2022, Twitch announced that it would change its rules for paying streamers. But this will not have been enough to avoid this umpteenth wave of layoffs. Hoping this is the only one of the year for the service…

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Teilor Stone

By Teilor Stone

Teilor Stone has been a reporter on the news desk since 2013. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining Thesaxon , Teilor Stone worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my teilor@nizhtimes.com 1-800-268-7116