The video game industry has been through a disturbing trend this year with a variety of companies from all sides being affected with layoffs. Earlier this year, 343 Industries, Bethesda, and Riot Games announced layoffs. At the same time, Games media has also been affected with sites such as GameSpot, Giant Bomb, and The Washington Post also going through restructuring by laying off employees. Now, Twitch has been affected by Amazon’s recent cuts of 9,000 jobs. More than 400 Twitch employees are affected. This news, coming following Emmett Shear stepping down as the CEO.
New Twitch CEO Dan Clancy said “Today I shared with Twitch employees that we’ve made the difficult decision to reduce the size of our workforce, which results in us having to say goodbye to just over 400 people. As a company focused on building community together, this decision was incredibly difficult and one we did not make without considerable thought. Our mission at Twitch is to empower communities to create, together. You rely on us to give you the tools you need to build your communities, stream your passions safely, and make money doing what you love. We take this responsibility incredibly seriously and sometimes need to make extremely hard decisions to ensure we protect our business in order for Twitch to be around for a long time.”
Like many companies, our business has been impacted by the current macroeconomic environment, and user and revenue growth has not kept pace with our expectations,” Clancy explained. “In order to run our business sustainably, we’ve made the very difficult decision to shrink the size of our workforce.”
What makes matters worse is what two Twitch workers confirmed to Polygon. Twitch employees were not told if they were impacted ahead of the announcement. Clancy wrote in an email that they will hear “no later than early next week.” One worker noted that Amazon CEO Andy Jassy’s update on the layoffs caused confusion among staff.
“I’m disappointed to share the news this way before we’re able to communicate directly to those who will be impacted, but it’s important for you to hear directly from me confirming this difficult news,” Clancy wrote in the email to staff.