After Unity’s announcement last Monday, it’s now Twitch’s turn to announce a massive layoff plan on January 10th 2024
Twitch, Amazon’s streaming platform, is planning to lay off around 35% of its workforce. That’s around 500 employees at risk of losing their jobs.
Although it has been under Amazon’s wing for nine years, Twitch still faces profitability problems. High operating and network costs have been a major obstacle, leading to the shutdown of operations in South Korea earlier this year.
This isn’t the first time Twitch has had to make tough decisions. Last year, the company laid off over 400 employees due to slower-than-expected user and revenue growth.
This is a reminder that 2024 will continue to be a year of intense cost rationalisation.