cuts continues to impact the technology sector. The last person to join the wave layoffs It was Twitch. Although there is no official announcement, the live video streaming platform will abandon a total of 500 videos employeesrepresents 35% of its staff as described Bloomberg.
These aren’t the first layoffs at Twitch. Last year, the Amazon-owned company had already terminated its business relationships with some companies. 580 workers, an adjustment that spans two rounds.
Despite its growing popularity, the platform is still unable to turn a profit. Amazon bought it in 2014 970 million dollars, However, the logistics giant’s economic breakthrough was not enough to revive the sector. business From Twitch.
failed strategy
The company is in a turbulent point. The operational costs of sustaining live content streaming at scale have skyrocketed. Each one ‘streamer‘As they explained in a statement, it will cost around $1000 a month. Moreover, the strategy of prioritizing advertising revenues was not only inefficient, but also led to discontent in the creator community.
In December, the platform announced that it would shut down its service in South Korea. Although it is one of the largest markets in the world e-sportsThe country’s “prohibitively expensive” fees had caused Twitch to operate at “significant losses”.
Co-founder and CEO, Emmett Cuttingresigned last year to make way Dan Clancy, his new boss. Other executives left the company in December.
Source: Informacion
Jackson Ruhl is a tech and sci-fi expert, who writes for “Social Bites”. He brings his readers the latest news and developments from the world of technology and science fiction.