Twitch Staff Fear Job Cuts Amid Profitability Concerns
What’s happening at Twitch?
Twitch, the popular streaming platform owned by Amazon, may be preparing for another wave of layoffs amid slowing user growth and profitability concerns. This follows previous layoffs in March 2023, October 2023, and January 2024, which collectively saw over 900 employees let go.
Official statements and context
The Wall Street Journal reports that Amazon, Twitch’s parent company, remains cautious about the platform’s profitability despite it generating approximately $2 billion in advertising and revenue in 2023.
- Amazon claims Twitch is “still losing money.” Amazon CEO Andy Jassy, who took over in 2021, has been conducting a profitability review across Amazon and has shown little tolerance for unprofitable divisions.
- An Amazon spokesperson stated, “Amazon has always taken a long-term view of Twitch and noted its ability to attract harder-to-reach audiences. The company said it remains confident in Twitch’s potential.”
- The spokesperson highlighted Twitch’s unique position in the livestreaming market, citing its lack of direct competition.
- Twitch CEO Dan Clancy explained in January, “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.”
Industry reaction
The potential layoffs are generating concern within the industry about Twitch’s future. Employees worry that Twitch could become another “zombie brand” under Amazon, similar to Goodreads, which Amazon acquired in 2013 and has since seen limited growth.
Twitch’s recent policy updates on sexual harassment have also been a focal point, with the platform aiming to improve safety measures. This follows allegations against streamer Dr Disrespect regarding inappropriate conversations with a minor on Twitch’s platform.
Impact in Canada
It remains unclear exactly how many Twitch employees in Canada will lose their job as a result of this anticipated layoff.
If you’re a non-unionized employee, check out our Twitch Layoffs guide.
You can also use our free Pocket Employment Lawyer tool for real-time insights.
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About the Author
Lior Samfiru
Lior Samfiru is a Founding Partner at Samfiru Tumarkin LLP and the Practice Leader of the firm’s Labour & Employment Law Group. Known for his advocacy and success representing both employees and employers, Lior exclusively serves clients in Ontario, where his extensive experience has made him one of Canada’s most sought-after employment lawyers.
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