Reikon Games, the developers behind cyberpunky top-down shooter Ruiner, have reportedly become the latest studio to lay off dozens of staff, with over half of the Polish indie said to have lost their jobs earlier this week.
16.01.2024 - 16:17 / engadget.com / Dan Clancy
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.
«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,» he wrote. «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.»
The move follows a headcount reduction of around 400 people in 2023 and Twitch's decision to cease operations in Korea. As Bloomberg reported earlier, the move comes amid concerns over losses at Twitch, which has failed to become profitable nine years after Amazon acquired it for nearly $1 billion. The costs of running the site are huge, given that it supports around 1.8 billion hours of live video content a month. A similar issue forced Twitch to leave South Korea, though CEO Dan Clancy said costs there are «ten times more expensive» than other countries.
Near the end of last year, several key executives departed the company, including its chief product officer, chief customer officer, chief revenue officer and chief content officer. Clancy himself has been CEO less than a year, as he replaced co-founder and CEO Emmett Shear in March of 2023.
In attempts to boost profitability, Twitch has reworked the way it does advertising and pays streamers in recent years. The site had over 50,000 partner creators back in 2022 and many have reportedly praised Clancy for using a more hands-on approach and listening to their concerns.
Parent Amazon has been on a cost-cutting mission, having laid off 27,000 employees over the last two years, including 9,000 in 2023. That's part of a downturn across tech companies, with large-scale layoffs last year at Google, Meta, Spotify, Epic Games, Unity and others.
Update, January 10 2024, 10:13AM ET: This story has been updated to reflect the fact that Twitch has now confirmed the layoffs, which were first reported by Bloomberg.
Reikon Games, the developers behind cyberpunky top-down shooter Ruiner, have reportedly become the latest studio to lay off dozens of staff, with over half of the Polish indie said to have lost their jobs earlier this week.
Reikon Games has reportedly laid off 60 to 70 people, equating to 56 percent of the company.
Microsoft will let go of 1,900 employees at Activision Blizzard and Xbox this week, it said on Thursday, the latest cuts in the technology sector that has extended massive layoffs over the past years into 2024.
Update: This story has now been updated with a response from a Microsoft spokesperson.
Microsoft is laying off 1900 people across its video game teams, including Activision Blizzard, ZeniMax and Xbox, equating to approximately eight percent of its gaming workforce.
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.
Riot Games have announced that they will shortly lay off "about 530" people, or 11 per cent of their global workforce, so as to "create focus and move us towards a more sustainable future", in the words of CEO Dylan Jadeja. The "biggest impact" will be felt outside of core development, though they'll affect at least one major internal team - the developers of Legends Of Runeterra. Riot are also binning off the Riot Forge publishing label, under which third-party developers create smaller-scale games based on Riot's own intellectual properties.
Riot Games announced another big round of layoffs for the second year in a row. This time around, the studio mainly known for the League of Legends franchise plans to remove 11% of its large workforce. Around 530 employees will lose their jobs, although they will get benefits such as six months of severance pay at minimum, cash bonuses, and others.
Riot Games has announced plans to lay off 530 of their employees, or about 11 % of their workforce.
Tencent Holdings' Riot Games plans to lay off 530 employees, or about 11 percent of its staff globally, the online gaming company said on Monday in a blog that included a letter to employees from CEO Dylan Jadeja.
Thunderful Group has announced a major restructuring programme that will see around 20% of its workforce laid off in an effort to significantly reduce running costs and rebalance the business.
Thunderful Group, a Swedish video game holding company that owns a number of game publishers and developers as well as gaming and toy distribution companies, has announced that it plans to lay off around 20% of its staff as it restructures its operations.