“I am sorry to have to share that we are taking the painful step of reducing our headcount by just over 500 people across Twitch,” Clancy wrote. “This is going to be a very difficult day.”
In the announcement, Clancy noted that Twitch paid more than $1 billion to streamers last year, noting that “while Twitch’s business remains strong, the size of the organization has been determined for some time based on where we optimistically expect our business to be.” In another 3 or years, not where we are today.
The cuts at Twitch were accompanied by layoffs elsewhere at Amazon today. The company’s Prime Video and MGM Studios divisions also cut hundreds of roles.