Twitch has announced that it will reduce its workforce by 400 employees as part of Amazon’s plan to lay off 9,000 workers across its divisions, including AWS cloud and advertising units. The layoffs are aimed at improving Twitch’s business outlook in the long term, as the current macroeconomic environment has impacted the company’s revenue growth and user engagement.

According to new Twitch CEO Dan Clancy, the decision to lay off employees was not an easy one, but it was necessary for the company to run its business sustainably. While Twitch is still growing in terms of its community and cultural impact, the company likely struggled to match its early pandemic highs.

This is a familiar story we’re seeing play out across the tech industry, with recent uncertain economic conditions dragging tech companies’ new measures for success back to Earth, prompting them to reduce the size of their teams. We wish all the affected employees the best in their future endeavors and hope Twitch continues to be a thriving platform for content creators and viewers alike. Stay tuned for more updates on this developing story.

Manish