Employment Law

Twitch trims headcount for the second time in months, reports claim


Just weeks away from kicking off TwitchCon in Las Vegas, Twitch has reportedly scaled back its staffing levels again.

In posts on X, formerly Twitter, Today Off Stream’s Zach Bussey claimed that an “unexpected layoff” was taking place at the Amazon-owned livestreaming platform on Oct. 3.

The update comes just months after more than 400 Twitch employees were let go in March when Amazon reduced its total workforce by approximately 9,000 positions.

Bussey added that the latest round of job cuts are believed to be “significantly smaller” than the March layoffs.

Following up on the potential reduction at the company, a source told GamesIndustry.biz that they were limited to the “customer experience organization.”

Twitch is reportedly shifting away from in-house positions and outsourcing these roles to external vendors.

According to the company’s LinkedIn page, it employs a total workforce of more than 13,800 people. Over 600 workers are located in Canada.

Major tech layoffs continue

The reported job cuts at Twitch come amid a flurry of tech sector layoffs in 2023.

Big names, including Epic Games, Google, Roku, Dell, Telus, Microsoft, Ritual, and Meta, have announced substantial reductions as they continue to navigate challenging economic conditions.

• Firm launches $130M class action against Shopify for breach of contract
• Canadian tech company Hopper cutting 30% of staff to reach profitability
• Where are layoffs happening in Canada?

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.

Severance pay technology industry employees
Rights to severance for provincially regulated employees
Severance entitlements during mass layoffs

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.

We can tell you if what you have been provided is fair and how to get proper severance if it falls short of what you are actually owed.

If you don’t receive the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.

In some cases, employers pressure staff into accepting poor severance packages, such as imposing a deadline for accepting the offer.

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

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