The San Francisco-based video live-streaming company Twitch is laying off hundreds of workers for the third time in less than a year.
The Amazon-owned subsidiary cut more than 500 workers on Wednesday, representing 35% of its workforce. Bloomberg first reported the cuts, with Twitch CEO Dan Clancy confirming the news to employees Wednesday morning in a companywide email that has since been shared via a blog post.
“We have worked hard over the last year to run our business as sustainably as possible,” Clancy wrote, adding that Twitch still has “work to do to rightsize our company.”
In the email, Clancy said, “It has become clear that our organization is still meaningfully larger than it needs to be.” Twitch’s company size, he said, had been based on where executives hoped to be “in three or more years” rather than current-day conditions.
Additionally, Twitch paid more than $1 billion to streamers, otherwise known as content creators, for their platform last year. Clancy said Wednesday’s job cuts were necessary to guarantee that the company could “continue to serve our streamers sustainably without impacting their ability to support their careers on Twitch.”
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In lieu of a comment, a Twitch spokesperson directed The Examiner to the company blog post.
Twitch, bought by Amazon nearly 10 years ago for $970 million, has dealt with a tumultuous year as it strives for profitability. The company axed roughly 400 employees as part of larger job cuts at its parent company in March, shortly after Clancy took control of the company from co-founder and longtime CEO Emmett Shear.
