Amazon-owned live streaming service Twitch will soon lay off 35% of its workforce to cut losses, meaning around 500 people will lose their jobs. In this respect reports Bloomberg.
The cuts could be announced as soon as this week, according to the agency. This is due to Twitch’s mounting losses, as well as the departure of many senior executives from the company in recent months.
Twitch’s main expense is renting cloud storage for content; The service produces 1.8 billion hours of video every month. Previously, for the same reason, the company announced that it would soon leave South Korea. Even the fact that Twitch uses infrastructure from Amazon, the world’s largest cloud server provider, doesn’t help the situation.
Although Twitch has paid a lot of attention to advertising lately, the platform has failed to become profitable during its nine-year existence under Amazon’s wing. A source from the company told Bloomberg.
At the time of publishing the news, Twitch press service had not commented on information about upcoming large-scale outages.
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