Amazon’s Twitch Announces Layoffs :35% Workforce 500 Employees to be Laid Off

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Image Source : Twitch.Tv

Introduction

In a continued news of negative development within the streaming industry, Amazon-owned Twitch is set to lay off around 35% of its employees i.e 500 People its workforce. The move comes in raising concerns over massive financial losses at Twitch and a series of continued high-profile departures among top executives thus raising questions of eventual crisis and sustainability of the platform .

Financial Woes and Continued high Infrastructure Costs

The layoffs, which was announced on Wednesday of First week of Jan 2024 ,is among the latest in a series of job cuts within the company Amazon . Twitch executives in state of confidentiality has cited the formidable challenge of running a large-scale website that supports 1.78 billion hours of live video content streaming on monthly basis. Even Twitch’s reliance on Amazon’s AWS Infra, the operational costs has very high to sustain and requires new ways to find a solution for sustainable business model .

Twitch’s decision to reduce its workforce also in line with current Amazon’s workforce reduction plan from 2022 and e-commerce giant having aggressively implemented two previous rounds of layoffs and a total of over 400 roles impacted earlier . The financial pressure faced by Twitch has been induustry trend .Amazon has laid off over 22000 staff in past 2 years .

Leadership Exodus

Twitch, a live-streaming platform acquired by Amazon has been facing revenue issue from long time .Increasing Financial financial deficits and in loss even nine years under Amazon’s ownership. The company’s change of fortune has not come along even after emphasis on advertising in recent years profitability looks a distant dream .

Apart from financial concerns, Twitch has witnessed exodus among top executives, creating an atmosphere of uncertainty among the current employees and Board . Over the past years several key figures, including the Chief Product Officer, Chief Customer Officer, and Chief Content Officer have left the company and gives an impression of sinking ship .

Impact on the Workforce

This round of layoffs are expected to impact approximately 35% of Twitch’s workforce more layoffs can also be announced .With his the total number of employees laid off have increased to 900 as previous rounds of job cuts already eliminated over 400 positions .Though such move can be seen as a way to rationalise coset but broader result will be seen in coming months

Advertising Revenue

Twitch has notably intensified effort to be profitable but only advertsing revenue may not be sufficient

its focus on advertising as a potential revenue stream. However, the persistent financial struggles indicate that the advertising-centric approach may not have fully offset the operational costs associated with maintaining the platform.Some other Revenue sources are mentioned below :

Subscription Models

Targeted Advertising

Virtual Goods and Microtransactions

Sponsered Content

Affiliate Marketing

Pay Per View Event

Conclusion

The impending layoffs at Twitch, is a glaring example of building sustainable business model rather than just being dependent on parent company or parent infrastructure companies using an Amazon infrastructure for years has not turn around twitch into a profitable company and that’s company should always focus on sustainability over growth . sustainable growth vision can only lead you forward and help you to bring built a long term company or brand

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