Amazon owned twitch to lay off 500 employees what is the reason know

Amazon ’s livestreaming platform Twitch may lay off employees. As a result, about 500 employees may lose their jobs, which is 35 percent of Twitch’s total workforce. Many top officers of the company have already resigned. In 2014, Amazon took over Twitch. Nine years later, last year, Twitch’s former CEO Emmett Shear resigned from his position. Since then, speculations were being made that Twitch may face workforce reduction in the coming days.

of NDTV Report According to the report, company officials have said that despite Twitch’s reliance on Amazon’s infrastructure, running a website with 1.8 billion hours of live video content a month is very expensive. In December, Twitch official Dan Clancy said that the company would shut down operations in South Korea because it is incurring too many costs to operate there.

According to reports, Twitch has focused on ads in recent years. Despite that, the business is not making a profit. This is the reason why the company is now going to lay off employees. In the year 2023, the world’s leading companies reduced their workforce and now this trend may continue after Twitch’s move in 2024.

Talking about Indian companies, startups like Paytm and Physicwala are also showing the way out to their employees. Spotify has already laid off a large number of employees. Companies like Google and Facebook have also attacked jobs. Just before the new year, Paytm cut more than 1,000 jobs, which is said to be 10% of its workforce.