Twitch has laid off just over 400 employees due the impact of the “current macroeconomic environment.”
The streaming company said it made the decision because user and revenue growth hasn’t kept pace with expectations, and indicated the job cuts were necessary if it wants to run the business “sustainably.”
“Our mission at Twitch is to empower communities to create, together. You rely on us to give you the tools you need to build your communities, stream your passions safely, and make money doing what you love,” wrote Twitch CEO Dan Clancy, in an update shared on the company website.
“We take this responsibility incredibly seriously and sometimes need to make extremely hard decisions to ensure we protect our business in order for Twitch to be around for a long time.”
Clancy suggested that Twitch will still have “big opportunities” to grow despite the layoffs, and said the company remains focused on inspiring, growing, and sustaining its community of streamers.
The job cuts were announced less than a week after Twitch’s former CEO and co-founder Emmett Shear departed the company.
Although Shear will continue to be involved with Twitch in an advisory role, the long-serving boss–who helped establish the company 16 years ago–chose to step down from day-to-day leadership duties to spend more time with his newborn son.
“For many years, I truly felt Twitch might die without my guidance and input, but I no longer feel that is true,” Shear wrote in a lengthy announcement shared last wek. “I think in fact it’s exactly that growth which has allowed me to even consider that I might not work at Twitch.
“I’m incredibly grateful, not only to the amazing folks I get to work with at Twitch today, but to everyone who built it along the way. Thank you, everyone, for your support, your critical thoughts, your trust, and your help. We built something great.”