Twitch, the globally recognized livestreaming platform, has announced a substantial reduction in its workforce, targeting a 35% cut that equates to approximately 500 employees.
This strategic decision follows the company’s recent departure from the South Korean market, revealing a commitment to reshaping its operational landscape in response to mounting losses.
This reduction marks Twitch’s second major round of layoffs, the first being the termination of 400 employees in the previous year, reflecting the broader challenges faced by even the most prominent players in the competitive livestreaming industry.
Reported by Bloomberg, the workforce reduction is part of Twitch’s broader strategy to consolidate and optimize operational costs. While Twitch stands as one of the most popular livestreaming platforms globally, supporting billions of hours of live video content entails substantial expenses.
Amazon, the parent company of Twitch, has also undergone significant layoffs, bidding farewell to a record-high of 27,000 employees. This move by Twitch comes on the heels of its decision to exit the South Korean market in December 2023, citing unsustainable network fees as a primary factor contributing to significant losses.
The CEO of Twitch, Dan Clancy, stated that the current business landscape in Korea offers no viable pathway for sustainable operations.
The livestreaming giant’s decision aligns with a broader industry trend, as seen with other tech companies such as Unity Software, which recently announced plans to cut 25% of its workforce, affecting around 1,800 employees.
As the new year unfolds, Twitch’s workforce reduction stands as a strategic response to financial challenges, reshaping its trajectory to ensure sustainability and resilience in an ever-evolving market.
