“I regret having to share that we are taking the painful step to reduce our headcount by just over 500 people across Twitch,” Clancy wrote. “This will be a very hard day.”
In the announcement, Clancy noted that Twitch paid out over $1 billion to streamers last year, remarking that “while the Twitch business remains strong, for some time now the organization has been sized based upon where we optimistically expect our business to be in 3 or more years, not where we’re at today.”
The cuts at Twitch were accompanied by layoffs elsewhere at Amazon today. The company’s Prime Video and MGM Studios divisions also cut hundreds of roles.