Since becoming the leading streaming platform for gamesTwitch has been making periodic cuts to several teams. As a result, employees are concerned that new layoffs before the end of 2024.
According to The Wall Street Journal, concerns arise because the platform still faces challenges in becoming commercially viable. Even with nearly $1 billion invested by Amazon, Twitch has yet to pay for itself and has seen declines in engagement and revenue.
By early 2024, Twitch had already laid off 500 employees, adding to the 300 laid off in 2023. The cuts impacted areas such as user support, which had many automated processes or lost employees focused on specific regions and languages.
Platform workers believe more layoffs may occur shortly after Amazon releases its next quarterly results. According to the Wall Street Journal, current CEO Andy Jassy has no tolerance for businesses that are not profitable or do not generate returns.
Sources consulted by the newspaper indicate that there is a fear among Twitch’s leadership that it will become a “zombie brand” within the company, operating with minimal employees and without receiving new investments or significant support.
In response to the report, Amazon said it has a long-term plan for streaming and sees it as a chance to reach difficult audiences. However, Dan Clancy, the division’s chief, admitted earlier this year that the platform is not profitablealthough he did not share details about his recipes.
Source: Eurogamer
Source: https://www.hardware.com.br/noticias/funcionarios-da-twitch-temem-novas-demissoes-em-2024.html
