Twitch Layoff Cuts Down 35% of Its Workforce

A mass Twitch layoff has resulted in the video game streaming company letting go of a big chunk of its workforce. The platform is terminating about 35% of its employees, leaving 500 people jobless.

This isn’t the first round of job cuts for the company this year. It already downsized twice in 2023, eliminating 400 positions. With the latest round of cuts, Twitch has dismissed almost 1,000 personnel in less than a year.

The reason for these massive job cuts seems to be due to the company’s financial struggles. Despite its dominance in the streaming arena since its launch in 2011, Twitch has yet to turn a profit. Operating costs, particularly in certain regions, have proven troublesome for the company.

The situation was made worse by several high-level executives leaving the company recently. Additionally, in December, Twitch announced the closure of its office in Korea, citing exorbitant operational costs. The Korean office will be closing down in February.

Yet, Twitch is not the only company in the gaming industry that’s struggling. Notably, Unity Software, a prominent player in game development software, announced it’s laying off a quarter of its staff as part of a “company reset.”

2023 was an oxymoron for the gaming world. It was a significant year for game releases but also a year marked by massive layoffs within the industry. These layoffs not only highlight the volatility of the gaming industry but also underline the economic struggle companies are facing.

Moving forward, it will be interesting to see how Twitch, with a slimmed-down workforce and a growing need for profitability, navigates its way in the highly competitive and evolving game streaming industry. These layoffs are a stark reminder that even the most well-known and successful companies are not immune to economic downturns or restructuring needs.