Amazon-Owned Twitch Makes Major Staff Cuts
Twitch, the livestreaming platform owned by Amazon, has announced significant layoffs, with about 35% of its staff affected. The decision was made as part of an effort to ensure the company’s long-term success and financial sustainability. CEO Dan Clancy explained that the cuts were necessary because the organization was larger than it needed to be. Twitch’s Chief Customer Officer, Doug Scott, referred to the layoffs as “gut-wrenching” but expressed confidence in the future of the business.
Concerns for Streamers and Other Layoffs in the Gaming Industry
Streamer Ben “CohhCarnage” Cassell raised concerns about how the layoffs would impact streamers, particularly those who rely on close collaboration with Twitch staff. In addition to Twitch, Amazon is also laying off several hundred employees in its Prime Video and MGM Studios divisions. Furthermore, Unity, a game engine firm, has announced it will lay off 1,800 jobs or 25% of its workforce. These developments reflect a broader trend of layoffs in the gaming industry.
Challenges Faced by Twitch and Unity
Last year was challenging for both Twitch and Unity. In addition to these recent layoffs, Twitch shut down its Crown channel and ended its service in South Korea due to cost constraints. Unity faced backlash from game developers over fee structure changes and saw the resignation of its CEO. Overall, the gaming industry experienced a staggering number of layoffs in recent years.
The Ongoing Trend of Layoffs in the Gaming Industry
The gaming industry continues to witness closures and layoffs at an alarming rate. Stray Souls game studio Jukai has already announced its closure this year, while ByteDance is seeking to sell its video game business. Bossa Studios and Archiact have also laid off significant portions of their staff. A tracker of game industry layoffs indicates that over 2,320 people have been affected by layoffs in 2024 so far.
Hot Take: Uncertain Future for the Gaming Industry
The wave of layoffs and closures in the gaming industry shows no signs of slowing down. This trend is occurring alongside a cooling labor market, causing concerns among gaming talent and gamers alike. The adoption of generative AI tools and large language models has further fueled anxieties about the impact on the industry. As a result, many are worried that layoffs will continue to plague the gaming sector.
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