Something really seems odd about this. On one hand, Amazon is set to make a ton of money by adding ads to their previously ad-free programming. Twitch, on the other hand, just closed down operations in a whole country. So, how is it that these two companies are still cutting jobs?
On Tuesday, Bloomberg had reported that Twitch was getting ready to bring the hammer down on 35 percent of its workforce. Again, to remove the obscurity, that is just a tad over 500 people who no longer have jobs. This news was confirmed in a blog post by CEO Dan Clancy the next day.
Over the last year, we’ve been working to build a more sustainable business so that Twitch will be here for the long run and throughout the year we have cut costs and made many decisions to be more efficient. Unfortunately, despite these efforts, it has become clear that our organization is still meaningfully larger than it needs to be given the size of our business.”
Twitch CEO Dan Clancy
The moves Twitch made here echo Unity’s latest cuts just a few days ago. Twitch managed to cut more people today than the entirety of 2023 when 400 people were let go. However, in Twitch’s world, they have never been profitable. Amazon acquired the company nine years ago for almost $1 billion. While Twitch has a lot of heart, it hasn’t shown Daddy Bezos the cash.
And speaking of Bezos, Amazon has also been doing some cutting as well. On Wednesday, the company confirmed they were doing several hundred layoffs between Prime Video and MGM Studios. Mike Hopkins who serves as Amazon’s entertainment boss messaged staff that it has “identified opportunities to reduce or discontinue investments in certain areas while increasing our investment and focus on content and product initiatives that deliver the most impact.”
Again, I find it so wild that so many people have to lose jobs because these people made poor decisions. Like, why did Dan need to be in a van during the summer. It takes so much out of a person who has gone through similar circumstances to constantly see what’s happening to so many hard working people.
How can anyone keep cheering on capitalism after all this?