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10.01.2024 - 01:14 / pcgamer.com
Amazon-owned streaming platform Twitch is set to lay off approximately 500 employees this week, or 35% of its total workforce, Bloomberg broke in a report on Tuesday.
According to Bloomberg's Cecilia D'Anastasio, Twitch may announce the layoffs as soon as tomorrow. The news comes just a day after game engine developer Unity announced it's laying off 25% of its employees in a «company reset,» and follows a year of large scale layoffs across the games and tech sectors that have affected tens of thousands of workers.
Twitch's parent company laid off 180 workers from Amazon Games in November, a relatively small number compared to the 27,000 employees it cut earlier in 2023. That mass layoff also dramatically impacted Twitch to the tune of 400 employees in March 2023, just after longtime CEO Emmett Shear departed the company after 16 years. The layoffs haven't been the only sign of trouble for Twitch: the platform just recently decided to pull out of South Korea over high network fees that forced it to operate in the country at a loss.
If the layoffs match Bloomberg's reporting, they will leave Twitch with approximately 930 employees, or half the workforce it had this time last year.
This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
Black Forest Games, the studio behind the recent Destroy All Humans! 1 and 2 remakes, has reportedly laid off about 50 people. This news comes from Kotaku, which learned from a source with knowledge of the situation that these layoffs were announced yesterday, January 24, and that more information about them would be provided next week.
Microsoft is laying off 1,900 workers — or around 8% of Microsoft Gaming’s 22,000 employees — from its gaming division. The majority of layoffs are at Activision Blizzard, according to the Verge, though cuts will impact Xbox and ZeniMax employees, too.
Twitch has reportedly issued a 30-day suspension to popular streamer Boggles1, following an on-stream stunt that saw the content creator gain plenty of notoriety throughout recent weeks. The Amazon-owned streaming platform has been no stranger to doling out bans to some of the biggest content creators using the platform, often garnering criticism for its policies. Popular streamers like IShowSpeed and Amouranth have been on the receiving end of Twitch's disciplinary action, with the former banned for nearly two years. Now, Boggles1 has become the newest streamer to receive a temporary ban.
League of Legends developer Riot has announced that its upcoming Stardew Valley-style spin-off will be the last game in its promising indie effort.
Riot Games has announced that it will be laying off 530 employees globally, with departures mostly impacting teams outside of development. In addition, Riot Games has also announced that it will shut down Riot Forge following the release of Bandle Tale next month, the arm of the publisher that works with other developers to deliver smaller, more traditional single-player experiences such as The Mageseeker and Song of Nunu.
Canadian developer Behaviour Interactive has joined the ranks of games industry companies cutting their employee numbers.
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Amazon-owned Twitch is preparing to lay off 35 percent of its employees or a little over 500 people. The news was first reported by Bloomberg on Tuesday and confirmed a day later by Twitchin a blog post signed by CEO Dan Clancy. Employees will learn today via email whether they are or aren't losing their jobs.
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In a follow-up livestream after a recent layoff announcement, CEO Dan Clancy confessed that Twitch is not profitable and has been relying heavily on support from parent company Amazon to sustain itself. Twitch just announced a massive round of layoffs, with roughly 500 people affected, and this subsequent statement regarding Twitch's financial stability has left many wondering if the platform's future is in jeopardy.
Amazon is losing money on Twitch, according to its CEO. Speaking in a livestream Q&A, Twitch boss Dan Clancy says that the site isn't profitable right now, failing to make money for its parent company, Amazon.