Employment Law

Amazon’s Twitch cutting 500 jobs to ‘rightsize’ the business

A photo of a person looking at multiple computer screens. (Photo: Mohammad Rahmani / Unsplash)

Twitch, the Amazon-owned livestreaming platform, announced that it’s reducing its headcount by “just over 500 people.”

The update comes as reports claim that Amazon is also cutting hundreds of jobs in its Prime Video and MGM Studios division.

What’s happening at Twitch?

In a blog post on Jan. 10, Twitch CEO Dan Clancy said a lot of work still needs to be done to “rightsize our company.”

“Over the last year, we’ve been working to build a more sustainable business so that Twitch will be here for the long run and throughout the year we have cut costs and made many decisions to be more efficient,” Clancy said.

“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.”

He added that the job cuts are necessary to ensure “we can continue to serve our streamers sustainably without impacting their ability to support their careers on Twitch.”

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Twitch layoffs in Canada

It remains unclear how many Canadian employees are affected by the latest reduction at Twitch.

According to the company’s LinkedIn page, it has more than 700 workers in the country.

Termination agreements for Twitch employees

In Canada, non-unionized employees at Twitch are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

If you don’t receive the correct amount, which happens often, you have been wrongfully dismissed and should take legal action.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

Severance for provincially regulated employees
Rights to severance for tech sector staff
• Severance packages during mass layoffs

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Major tech layoffs continue

Twitch isn’t the only major tech company that has announced sweeping job cuts to kick off 2024.

Unity Software is eliminating approximately 25 per cent of its workforce, while Xerox is trimming its headcount by 15 per cent.

The layoffs come after another tumultuous year for the tech sector.

In 2023, big names, including Bolt, Cruise, Etsy, Spotify, Broadcom, ByteDance, Informatica, Ubisoft, Bungie, Splunk, and Nokia, pulled out the axe as they continue to navigate challenging economic conditions.

• Firm launches $130M class action against Shopify for breach of contract
• Report: Google could cut jobs in ad sales unit amid AI success
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

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