Bloomberg sources claim that the streaming service Twitch is expecting mass layoffs. According to their information, Amazon owns it and is preparing to cut more than a third of streaming service employees – about 500 people.

As Bloomberg writes, with the help of layoffs, Amazon hopes to reduce costs. Although the company spends large sums on the site’s development, the service allegedly remains unprofitable. Earlier, for a similar reason, Amazon decided to close Twitch in South Korea – the cost of maintaining stream service in the country was ten times higher than in other regions, and as a result, the service failed to make a profit there.

The layoffs are expected to be officially announced as early as today. A Twitch spokesperson declined to comment to Bloomberg on the sources’ information.

Last year, media reported two layoffs at Twitch, leaving more than 400 people out of work. Amazon itself has cut 27,000 employees across the company for 2023.

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