Twitch announced plans to cut staff on Monday, proving it’s not immune to the cutbacks that have hit the tech industry over the past six months.
The layoffs affect the company’s 400 employees and have been described as an effort to improve Twitch’s long-term business prospects. The cuts are part of Twitch’s parent company Amazon’s plan to lay off 9,000 employees across multiple departments, including AWS Cloud and advertising departments.
New Twitch CEO Dan Clancy said: “Like many companies, our business is being impacted by the current macroeconomic environment, and user and revenue growth has fallen short of expectations.” “We have made the very difficult decision to reduce our workforce in order to stay in business.”
Clancy announced the news on the company’s blog days after Twitch CEO Emmett Shear said he was leaving the company to spend time with his family. Clancy moves from her old role as president to that of CEO, responsible for the day-to-day management of the company.