Amazon layoffs hit streaming platform Twitch

More than 400 Twitch workers were impacted by Amazon’s expansive layoffs announced Monday, according to a memo from new Twitch CEO Dan Clancy. Amazon Web Services and human resources were all affected by the company’s 9,000-job cuts. This news comes just days after Emmett Shear, the former chief executive officer of Twitch was fired.

Clancy blamed the layoff on “the current macroeconomic environment,” saying user and revenue growth did not meet expectations. “In order to run our business sustainably, we’ve made the very difficult decision to shrink the size of our workforce,” Clancy said. Twitch declined to comment further, nor would it confirm Twitch’s total headcount.

Twitch started as Justin.tv back in 2007. In 2007, the brand was changed to Twitch Interactive. Amazon bought the streaming service for $1B that year. Twitch was particularly popular during the epidemic. It was still the most popular streaming site in the world. Twitch’s viewership numbers have declined, but they’re still high.

This is Amazon’s second round of layoffs this year, with more than 18,000 people cut from the company in January. This wave of layoffs was mostly focused on Amazon Stores which include Comixology, its comics company.

It feels like a different tech company is announcing layoffs every day,And it’s extended into the video game industry, too. Microsoft’s 10,000 cut jobs impacted studios like Bethesda and 343 Industries, which make the upcoming Starfield and Halo Infinite, respectively. Riot Games and Unity Software were among other studios to lay off employees. These layoffs are happening for a variety of reasons. Although official reasons may differ, it is usually due to slowing growth after the tech boom of the pandemic. The companies are looking to cut costs, but will they be able to lay off employees? ActuallyThe Verge says cutting costs can be a controversial topic.