Twitch will reportedly lay off around 500 employees this week

videogameschronicle.com:

Streaming giant Twitch is set to lay off around 500 members of staff this week according to a new report.

According to Bloomberg, the Amazon-owned platform will reduce its workforce by 35%. Twitch declined to comment on the story when approached by Bloomberg.

This is the latest blow in a difficult period for the streaming frontrunner. Last year the company fired over 400 employees as part of company-wide cuts at parent company Amazon.

The platform has also faced struggles with its viewers and creators in recent years as controversy swirls around content policies and what is actively promoted on the platform, such as partial or implied nudity.

This coincides with rival streaming platform Kick offering massive deals to some of Twitch’s highest-viewed creators.

In December, the company announced plans to end service in South Korea in a move that Twitch owed to skyrocketing ISP fees, which are far higher in South Korea than in other territories in which Twitch operates.

After a tough 2023, job losses in the video game sector have continued into 2024. Earlier this week Unity announced it intends to lay off approximately 1,800 employees, or around 25% of its workforce.

This is the fourth round of layoffs at Unity in the last year and follows a period of significant instability for the company. In October, it announced that John Riccitiello was stepping down as president and CEO effective immediately.

Last year, it’s estimated that over 9,000 people lost their jobs in the video game sector.

Companies impacted by layoffs include Xbox Game Studios, Epic Games, Sony Interactive Entertainment, CD Projekt, Unity, Riot Games, Blizzard, Crystal Dynamics, BioWare, Striking Distance, Team17, Frontier Developments and Telltale Games.