Amazon has announced that it is laying off hundreds of its employees, a recent move that has shocked everyone in the tech industry. Among the Amazon layoffs, Twitch is being hit the hardest as it is letting go of 400 of its employees. Because of this, many are wondering what will happen to the streaming platform now – is Twitch shutting down? In this article, join us as we delve into the details of the layoffs and what it means for Amazon, Twitch, and its remaining employees.
What happened with the Amazon layoffs?
On March 20th, 2023, Amazon announced that it would be letting go of hundreds of its employees. The layoffs affect several of Amazon’s companies including Twitch, AWS, and Amazon Studios. According to the tech giant, this decision was made to improve the company’s profitability and competitiveness in the current market.
It is also worth noting that over 400 employees from Twitch were part of the layoffs. These employees made up almost 5% of the streaming platform’s workforce, opening up conversations about whether Twitch is shutting down or not. Compared to Amazon’s other divisions, Twitch had the most employees in the layoffs.
Why was Twitch hit the hardest?
It is quite easy to see why Amazon made the decision to greatly downsize Twitch. If we looked at Twitch’s stats back when streaming was taking off, it dominated the market. The platform allows users to stream content like gaming, daily life, and other topics that may potentially bring in a large audience.
Unfortunately, Twitch is unable to keep up in the streaming scene nowadays especially with its current competition.
- YouTube and Facebook streaming have taken things to the next level, with fellow social media giant TikTok catching up.
- Twitch has been falling behind quite a lot in the recent years and failing to reclaim its throne . Because of this, both Amazon and Twitch have been looking for ways to cut their costs.
Twitch CEO Emmett Shear steps down
Aside the layoffs, one other blunder Twitch is dealing with is Twitch CEO and co-founder Emmett Shear stepping down. Dan Clancy, the current president of Twitch, will take over his place as the CEO. Shear has felt that it is time for new leadership to take over, especially in this age wherein more competition for streaming platforms are sprouting.
As the co-founder, Shear has been with Twitch since 2011. During the time he has been with the streaming platform, Shear has contributed a lot to its success and the kind of platform it is today.
Is Twitch shutting down?
Analysts and the general public speculate that Twitch may be shutting down soon. On the other hand, analysts have also speculated that Amazon may be looking to sell off the platform instead of shutting it down.
- Given how Twitch is falling behind its competitors, this move is possible as Amazon wants to focus on profitability moving forward.
- Besides that, it is possible that Amazon retains Twitch for the time being. Only time will tell of Twitch’s future, but given how the gaming industry continues to grow and evolve, Amazon should definitely consider a lot of things before they decide to shut down or sell Twitch.
As for the employees affected by the layoffs, we cannot imagine the frustration and sadness they may be feeling right now. On the bright side, Amazon has promised that they will provide severance packages and other forms of support to employees affected by this.
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Hopefully, those involved in the Amazon layoffs are able to bounce back. What do you think is the future of Twitch, then? Will Amazon keep the company around, or is it time for our favorite Twitch streamers to make the switch to YouTube or Facebook? Share your thoughts with us in the comments below! For more content, stay with us, here at Spiel Times.
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