Twitch layoffs staff as platform is officially not profitable

We always knew that this year would be off to a rocky start given the number of layoffs. If you haven’t heard yet, here is a list of all the following layoffs in the first 11 days of 2024. Twitch layoffs being only one of the few firms feeling the crunch in early 2024.

Layoffs

• Pixar with 20% layoffs
• Audible with 5% layoffs
• Google with several hundreds of jobs
• Amazon with several hundreds of jobs
• Twitch with 35% of layoffs
• Treasure Financial 60% layoffs
• Duolingo with its contractors
• Rent the Runway with 10% layoffs
• Unity with 25% layoffs
• Pitch with 66% layoffs
• BenchSci with 17% layoffs
• Flexe with 38% layoffs
• Trigo with 15% layoffs
• InVision shuts down completely
• VideoAmp with 20% layoffs
• Orca Security with 15% layoffs
• FrontDesk lays off an estimated 200 people

And now CEO of Twitch Dan Clancy has candidly revealed in an interview that right now Twitch isn’t profitable.

Twitch CEO Dan Clancy admits openly that Twitch is currently not profitable. pic.twitter.com/HL6olUYV5B

— Lowco (@LowcoTV) January 11, 2024

In a challenging announcement, Twitch CEO Dan Clancy shares the tough decision to downsize the company by over 500 employees. This move comes as part of an effort to streamline operations and align the organization’s size with the current scale and conservative growth projections.

Despite Twitch’s financial strength, the decision aims at ensuring long-term sustainability without compromising support for streamers. Dan acknowledges the difficulty of the situation and the passion employees have for the Twitch community. The downsizing is a strategic step, ensuring that the organization is optimistically sized for future growth rather than the present reality.

Emphasizing transparency, Dan promises direct communication with affected individuals, detailing severance packages and providing support during the transition. Despite the leaked information causing anxiety, Dan expresses gratitude to departing employees and underscores Twitch’s commitment to serving the community through these challenging times.