Amazon’s livestreaming platform Twitch is reportedly planning to cut around 500 jobs, representing about 35% of its workforce, according to sources, Bloomberg reports.
The move follows concerns about Twitch’s losses and the departure of several top executives in recent months. The company has been grappling with the challenge of sustaining the costs associated with running a large-scale website that supports 1.8 billion hours of live video content each month.
Twitch CEO Dan Clancy had previously mentioned the prohibitive expenses in South Korea, leading to the decision to cease operations there. Despite efforts to focus on advertising, it remains unprofitable nine years after Amazon’s acquisition.
The cuts are expected to be announced soon and come after two rounds of layoffs in the previous year, affecting over 400 positions. The job cuts come as part of a broader effort by Amazon to manage costs across its business units.
