Following a wave of layoffs that have rocked the gaming and tech industry in recent months, Amazon-ownedTwitchis the latest company in the space to announce employee layoffs. While thedrama surrounding popular Twitch streamershas always been a major draw for the site, this real-world corporate drama now has hundreds of former Twitch staff members seeking new employment.
Twitch has undergone a radical transformation since it began life as streaming site Justin.tv back in 2007. Originally a “lifecasting” site where users would broadcast their day-to-day activities, the growing popularity of gaming streams led the founders of Justin.tv to spin off Twitch into its own website in 2011 and the site has continued to grow ever since. Considered by many to be the preeminent site for livestreaming, Twitch has faced controversy in recent years over issues ranging from revenue splits with creators to its often-underwhelming attempts to combat harassment on the platform. Adding to the site’s woes,Twitch CEO Emmett Shear resigned earlier this monthafter over 16 years with the company.
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A post on the officialTwitchblog from new CEO Dan Clancy has revealed that the company has laid off “just over 400 people” in an attempt to reduce the size of the company’s workforce. Clancy’s post states that the choice to terminate the employees was a difficult one and was made only after “considerable thought.” Attempting to justify the unexpected layoffs, the post states that both user and revenue growth had failed to keep pace with Twitch’s expectations and that the reduction in workforce was necessary to ensure the long-term future of the company. Clancy ends the post by stating that Twitch will continue to focus on “inspiring, growing and sustaining our streamers globally.”
While some Twitch viewers might be happy to know that the company’s layoffs could ensure that their favorite streamers are around for years to come, that’s likely to be cold comfort for the former Twitch employees now polishing up their resumes. While not as substantial as the layoffs at some other companies in and around the gaming industry in recent months, this news is sure to rattle employees in the sector already worried about their job security. Even some smaller companies in the field have announced staff reductions recently, withWormsdeveloper Team17 announcing a round of layoffsearlier this month.
Even though Twitch viewers are unlikely to notice any changes in their experience on the site following these recent layoffs, such a large shake-up at a company already facing numerous threats and controversies doesn’t necessarily bode well for the streaming site’s long-term stability. And with new competitors like thelivestreaming site Kickalready working furiously to poach talent and viewers fromTwitch, the site may be in for an even rougher road ahead.
