Twitch Lays Off Over 500 Employees - News
by William D'Angelo , posted on 10 January 2024 / 2,714 Views
Twitch last March laid off just over 400 employees and now CEO Dan Clancy has announced another round of layoffs that will see more than 500 employees let go. This is around 35 percent of its staff.
"Today I have some incredibly difficult news to share," said Clancy. "As you all know, we have worked hard over the last year to run our business as sustainably as possible.
"Unfortunately, we still have work to do to rightsize our company and I regret having to share that we are taking the painful step to reduce our headcount by just over 500 people across Twitch. This will be a very hard day. Our service exists to empower communities to create, together, and every single one of you has played a vital role in fostering our community and furthering that mission.
"I know many of you are wondering why this is happening. 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.
"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. Last year we paid out over $1 billion to streamers. So while the Twitch business remains strong, for some time now the organization has been sized based upon where we optimistically expect our business to be in 3 or more years, not where we’re at today. As with many other companies in the tech space, we are now sizing our organization based upon the current scale of our business and conservative predictions of how we expect to grow in the future.
"This decision, while incredibly difficult and painful, is necessary to ensure that we can continue to serve our streamers sustainably without impacting their ability to support their careers on Twitch. Part of what makes this so difficult is the passion that so many of you share for the Twitch community, and the hard work you’ve put into serving our streamers."
Clancy will host a Twitch stream on Thursday, January 11 at 1:00 pm PT / 4:00 pm ET / 9:00 pm UK to speak with the community.
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can contact the author on Twitter @TrunksWD.
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So this time last year it had over 1,800 staff? I'm honestly surprised a site like Twitch needed that many staff.
Probably including Twitch Users who had contracts with them
I have serious doubts about Twitch having contracts with so few users, but I guess such numbers are already a bit hard to grasp intuitively, so I could certainly be wrong.
Based on what some streamers have been saying they are also changing the subs split, making it 50/50 for all streamers instead of higher ratios for certain big streamers, meaning they actually make more money. Their mega corporation owners must be happy.
I looked it up properly, it's kinda odd. It does indeed hinder income of larger streamers but it's like an odd middle ground. You need 350 regular subs to qualify for a 70/30 split, else it's 50/50 but it's then only up to the first 100k brought in, and it drops back to 50/50 again. But Gifted and Prime Subs don't count to the 350 regular subs.
Very confusing.
the times are changing.
In the long run they will all be happy to no longer have a redundant job for a shit company. Who am i kidding, they will most likely go get another redundant job for another shit company
