In a new open letter published directly to the Twitch Blog site from CEO Dan Clancy, the streaming company has announced its biggest round of layoffs yet with 35% of the workforce to be affected.
Amazon acquired the streaming platform, Twitch, for ~ $1 billion way back in 2014, and since then the company has made many decisions regarding the future of the live-streaming platform such as the latest deployment of an ‘artistic nudity’ policy (and subsequent removal of) that shook the community. Today, in an open letter to employees Twitch CEO Dan Clancy has announced the company’s plans to cut the streaming company workforce by 500 people, which will affect 35% of their staff.
In the open letter, CEO Clancy clarifies why the company is cutting jobs in the first place, after attempting to ‘become more efficient’ in other ways (not mentioned). He says “Unfortunately, despite these efforts, it has become clear that our organization is still meaningfully larger than it needs to be given the size of our business” and while the company did pay out over $1 billion to streamers last year, Clancy notes “As with many other companies in the tech space, we are now sizing our organization based upon the current scale of our business and conservative predictions of how we expect to grow in the future.”
Twitch isn’t the only division of Amazon getting workforce cuts, as Amazon has also announced cuts of hundreds of jobs in Prime Video and MGM Studios in a memo as well according to Deadline. This comes on the heels of a period between 2022 and 2023, which saw the largest downsizing Amazon has made since the company started, with 27,000 jobs being cut within that timeframe. This is after Amazon announced an ad-based tier for their Prime Video streaming service at the end of December.
Senior Vice President of Prime Video and Amazon MGM Studios Mike Hopkins said “This is a difficult decision to make and one that my leadership team and I do not take lightly. It is hard to say goodbye to talented Amazonians who’ve made meaningful contributions on behalf of our customers, team and business. Thank you for your dedication and work” after claiming Prime Video is “the first-choice entertainment destination for customers worldwide” before the job cut announcement on January 4.
Fans interested in seeing the whole Twitch statement can head over to the official blog where the letter remains, or can head over to the official Prime Video & MGM Studios cuts announcement for more information.