Twitch Layoffs: 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.

Layoffs in Canada

It remains unclear exactly how many Twitch employees in Canada will lose their job as a result of this anticipated layoff.

Your rights

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 applies to individuals working in any capacity — full-time, part-time, hourly, or potentially even independent contractors — in Ontario, Alberta, and British Columbia.

Severance is the compensation provided to non-unionized workers in Canada by their employer when they are terminated without cause, and 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.

Severance offers and deadlines

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay. An employer’s deadline to sign back a severance offer is not legally enforceable or binding.

LEARN MORE
• Severance pay for provincially regulated employees
• Rights to severance during mass layoffs
• Severance entitlements in a recession

Major layoffs continue

The job cuts come amid a flurry of layoffs in 2024.

Big names, including Intuit, UiPath, Dyson, Vancity, Stifel, SAP Canada, Netflix, AmDocs, EXL Service, Best Buy, Relic Entertainment, Ubisoft, Intel, Amazon, and Telus, have pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Shell to lay off 20% of deals division, part of restructuring
• Walmart Canada cuts jobs amid restructuring, shift to Spark: Reports
• 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.