Bloomberg sources claim that the Twitch streaming service is waiting for mass layoffs. According to their information, Amazon, which owns it, is preparing to cut more than a third of Twitch's employees — about 500 people.
According to Bloomberg, with the help of layoffs, Amazon hopes to reduce costs. Although the company spends large sums on the development of Twitch, the service allegedly remains unprofitable. Earlier, for a similar reason, Amazon decided to close Twitch in South Korea — the cost of maintaining Twitch in the country turned out to be ten times higher than in other regions, and as a result, the service failed to make a profit there.
The layoffs are expected to be officially announced today. A Twitch representative declined to comment to Bloomberg on the sources' information.
Last year, the media reported on two rounds of layoffs at Twitch, after which more than 400 people were left without work. Amazon itself has cut a total of 27,000 employees across the company in 2023.