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Twitch is reportedly planning to lay off around 500 employees, comprising 35% of its workforce, amid financial concerns and the recent departure of key executives, marking the third round of layoffs since 2023. Tech News at Tool Battles

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Twitch, Amazon’s Streaming Platform, Set to Lay Off 35% of Workforce Amid Financial Concerns

TL;DR: Twitch is reportedly planning to lay off around 500 employees, comprising 35% of its workforce, amid financial concerns and the recent departure of key executives, marking the third round of layoffs since 2023.

In a report by Bloomberg, it has been revealed that Twitch, the popular streaming platform owned by Amazon, is preparing to lay off approximately 500 employees, which accounts for 35% of its total workforce. While an official announcement from Twitch or Amazon is yet to be made, sources indicate that an announcement is imminent, expected to be delivered as early as Wednesday PT/ET.

These alleged layoffs are reported to be connected to financial concerns at Twitch, including the recent departure of key executives, as detailed by Bloomberg. If these workforce reductions proceed, it will mark the third round of layoffs for the company since 2023, with around 400 jobs already cut, and the closure of Twitch’s office in Korea.

The motive behind these cuts appears to be a cost-cutting measure, attributed to Twitch’s reported ongoing financial struggles despite its widespread popularity in the gaming community. This development comes on the heels of other major layoffs in the tech and gaming sectors, including Unity’s announcement of a 25% reduction in its workforce just the day before.

As Twitch’s plans for restructuring are yet to be officially disclosed, observers expect more concrete details regarding these potential layoffs to surface in the coming week. This reported downsizing would be the second significant workforce reduction for Twitch in less than a year, following the cutting of 400 jobs in March 2023.

Amazon, Twitch’s parent company, previously laid off 180 workers from Amazon Games in November, and the company’s earlier mass layoff of 27,000 employees in 2023 significantly impacted Twitch, leading to the elimination of 400 positions shortly after the departure of longtime CEO Emmett Shear. Twitch’s recent decision to withdraw from South Korea due to high network fees further signals the platform’s challenges in operating profitably.

If the reported layoffs align with Bloomberg’s information, Twitch will be left with approximately 930 employees, representing half the workforce it had a year prior.

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