Large technology companies continue to lay off employees in order to balance their balance sheets. The latest company in the sector to join the “trend” is Twitch, which will lay off a total of 400 workers. The streaming platform’s downsizing follows the massive layoffs recently announced by Amazon, its parent company, which will lay off 9,000 employees from its Amazon Web Services, human resources, advertising and Twitch divisions.
This round of layoffs comes just days after former Twitch CEO Emmett Shear resigned from his position. According to a post by current Twitch CEO Dan Clancy, the downsizing was supposedly intended to improve Twitch’s long-term business prospects.
“Like many companies, our business has been affected by the current macroeconomic environment, and user and revenue growth has not kept pace with our expectations,” Clancy says. “In order to run our business in a sustainable manner, we have made the very difficult decision to reduce the size of our workforce.”
Twitch would thus become part of a large and growing list of layoffs in the technology industry. In addition to Amazon itself, its parent company, big tech companies that have laid off hundreds and thousands of employees in recent months include Microsoft, Twitter, Spotify, ByteDance and IBM.
The latest case of massive layoffs in the sector came from Meta, Mark Zuckerberg‘s company, which announced a few days ago that it will lay off 10,000 employees in the coming months. This figure is in addition to the 11,000 workers already laid off last November.