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Amazon's Twitch To Cut 500 Employees, About 35% of Staff (yahoo.com) 75

Posted by BeauHD from the what-to-expect dept.
According to Bloomberg, Amazon's livestreaming site Twitch is expected to cut 35% of its staff, or about 500 workers. "The cuts, which could be announced as soon as Wednesday, come amid concerns over losses at Twitch and after several top executives left the company in the span of a few months," notes Bloomberg. Slashdot reader quonset shares the report: Running a large-scale website supporting 1.8 billion hours of live video content a month is enormously expensive, despite Twitch's reliance on Amazon's infrastructure, company executives have said. In December, Twitch Chief Executive Officer Dan Clancy said the company would cease operations in South Korea, where the costs are "prohibitively expensive," according to a blog post he wrote. Twitch has increased its focus on advertising in recent years. Nine years after Amazon's acquisition of the company, the business remains unprofitable, according to the people, who asked not to be identified discussing private information.

In the final months of 2023, several top executives announced their departures, including Twitch's chief product officer, chief customer officer and chief content officer. Twitch also lost its chief revenue officer, who worked on Twitch from within Amazon's Ads unit. "It's always bittersweet when talented leaders move on to pursue new opportunities,'" a Twitch spokesperson said at the time. "We are incredibly grateful for their contributions to Twitch and our community, and wish them all the best."
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Amazon's Twitch To Cut 500 Employees, About 35% of Staff More

Amazon's Twitch To Cut 500 Employees, About 35% of Staff

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  • Maybe stop the free Prime subs? (Score:4, Funny)

    by jonathanfrisby ( 10333597 ) on Tuesday January 09, 2024 @09:42PM (#64145711)
    Amazon should funnel that money into lowering the price of $10 salads at Whole Foods or something instead

    • Re: (Score:1, Insightful)

      by Anonymous Coward
      If people are dumb enough to pay $10 for a salad, why in the world would they lower the price?
      • If people are dumb enough to vote for Donald Trump, why in the world he stop conning and ripping them off?

        • Re: (Score:2)

          by Luckyo ( 1726890 )

          Leftie foodies are Trump voters?

          • Don't underestimate the relatively high number of overpriced salad-bar high-income earners who voted for that orange golem. It's wild, but true.

            • Re: (Score:2)

              by Luckyo ( 1726890 )

              This is novel for TDS. I heard a lot of variants of that derangement, but the "leftie foodies voted for the Orange Man" is a new one.

              • Someone doesn't seem to remember the non-trivial number of Bernie bros who were "Bernie or Bust! Bernie or Trump, never Hillary." Pepperidge Farms remember (and that wasn't that long ago, mind you.)

                • Re: (Score:2)

                  by Luckyo ( 1726890 )

                  You mean twitter trolls masquerading as Bernie bros? Because voting patterns didn't show that.

    • Amazon should funnel that money into lowering the price of $10 salads at Whole Foods or something instead

      I think you're a little behind the times on your inflation. $10 for a meal-sized salad isn't bad. Here in FL, you'll pay more than that for a salad from Chick-Fil-A.

  • Good god (Score:5, Insightful)

    by NobleNobbler ( 9626406 ) on Tuesday January 09, 2024 @09:58PM (#64145731)

    Does anyone else think that the state of tech is a lot worse than is let on, or what

    • The summary says twitch never was profitable, over all those years.

      • Which is an interesting business model. It strikes me as, "in search of shitification", yet never reaching... well. That.

      • Re: (Score:3, Interesting)

        by Anonymous Coward

        With some experience as an ex-competitor, streaming low value content (all things twitch streams) is super unprofitable without your own datacenter. Even with your own peering, you still pay a lot to get this one off data to mostly unpaying viewers. The revenue per stream is too low no matter the donation or amount of ads. Webcam girls and artificially subsidizing is the only way it works and that barely works.

      • You'd think the big game studios would happily fund it, the platform is one giant ad for their games. Fortnight would never have made the billions for Epic if not for twitch streamers.

    • ...or is this a correction? (Score:5, Insightful)

      by Somervillain ( 4719341 ) on Tuesday January 09, 2024 @10:19PM (#64145775)

      Does anyone else think that the state of tech is a lot worse than is let on, or what

      As an industry-insider, I am surprised this hasn't happened sooner. We've had like 2 decades of record-low interest rates and people throwing money into anything resembling a business plan. Maybe I am showing my age, but I am skeptical there is BROAD appeal for watching other people play video games. There's clearly an audience for it, but I just don't get it. For most of us, we only watched someone else play a game when we were waiting for our turn. So let's say this is an amazing great time for those under 30...and torture for everyone older...well...not a GREAT business plan. Decent?....sure...but more of a niche audience.

      Let's not forget the majority of the population doesn't play video games. That's simply a fact. There are more people alive who don't actively play video games at all than who do. For many on slashdot, you may not know anyone like this, but I have a lot of female friends...most don't play video games. Some?...yeah...but some percentage greater than 51 do not.

      OK, so you have mostly young men with so much free time they want to watch others play video games rather than hang out with actual friends or play the video games themselves? How much monetization potential is there?

      As you get promotions and more pay, you tend to have less time, not more...more interest from the opposite sex and dating is not conducive to watching twitch streams, to my knowledge....then you get married and have kids...definitely less time for that kind of stuff. So...the folks most likely to buy lots of stuff don't have time to watch your service?...seems like a headwind to me.

      Every old person can name dozens of dot coms and web 2.0 companies with business models that didn't make sense and they ultimately perished. Now that borrowing money is not so cheap, people want your business to turn a profit, so companies with niche business models have to become profitable or perish.

      Honestly, this is not a bad thing. Many companies with great business models are starved for resources: talent, capital, attention, customers, etc. Kosmo and Webvan ultimately become Instacart and Uber eats. Pets.com becomes Chewey. AltaVista, Excite, and Ask Jeeves become Google. Several bad companies fail and the good companies get stronger.

      We've had many years of unsustainable expansion among the top tech companies. Now that they're correcting and focusing on profitability instead of trying to run a frathouse for nerds...instead of being the coolest campus on the valley...focusing on running a business...their correction means their competition can get top talent. Top engineers can go to second-tier companies with actual customers and a business model, but far less sex appeal. Banks, insurance companies, sellers other than Amazon.com, finance companies, and manufacturers can hire tech talent. Yeah, the number of jobs with free laundry service, dog-walking, and beer on tap throughout the day is declining, but we still have plenty of well-paying tech jobs.

      • Think of it like a basketball player watching videos of dribbling drills or highlights of their favourite player.. How do you get better? Watch/study better players.

      • As an industry-insider, I am surprised this hasn't happened sooner.

        What is an industry insider? Aren't we all industry insiders here on Slashdot?

      • Re: (Score:1)

        by Bahbus ( 1180627 )

        I've replaced most of my TV watching with GTA RP on Twitch.

      • Re: (Score:2)

        by AmiMoJo ( 196126 )

        All the evidence suggests that people like sports and will pay to watch them. eSports is no different in that regard. What is different is the demographic skewing younger, and therefore with less disposable income.

        It may just be a case of waiting for them to earn more, or gen Z might be screwed by the economy/climate change/housing costs and never pay as much for entertainment as previous generations.

        • All the evidence suggests that people like sports and will pay to watch them. eSports is no different in that regard. What is different is the demographic skewing younger, and therefore with less disposable income.

          I disagree that eSports are no different in that regard.

          First, it's insane (to me) how many people watch American football and spend a lot of money doing so. The NFL and major league baseball (with the NBA distant behind them) make more money than most of the soccer leagues around the world combined. I cannot fathom the amount of money flowing through the NFL.

          While football tactics, rules, strategies, etc., have changed, the game is understandable for anyone who has watched football since about 1920 or so.

          • Re: (Score:2)

            by AmiMoJo ( 196126 )

            There are certain games I like, but I'll sometimes watch my favourite streamers play others. It's about their personality and commentary, and about the struggle to win.

            • > There are certain games I like, but I'll sometimes watch my favourite streamers play others. It's about their personality and commentary, and about the struggle to win.

              So I agree and I would argue that's very different than traditional sports. For most sports, fans loyalty is to a team or institution. The players change, the coaches change, the commentators change, but the team remains the same.

              If your favorite player switches to a different team, they're probably no longer your favorite player. etc

      • 1.8 billion hours in average per month, that's on the order of magnitude of 10 hours twitch a month per user. That's fucking broad in my view. And the "most people don't play game" was maybe true back in 2000 or 2010, but nowadays gamer back from 1990 or 2000 are now getting older (for reference I am 50+).

        "According to a survey conducted in October 2022, 70 percent of adults in the United States played video games on at least one platform. In comparison, 30 percent of U.S. adults did not play video games at

        • (nearly) Everyone HAS played a video game at some point in their life. Few people play them daily or weekly. Talk to women. Talk to parents. Talk to couples. You're telling me that you're confident that if you asked 10 married couples (outside a gaming convention) BOTH people would play video games for more than an hour a week? I am confident that if you went around any classroom and interviewed the parents, you'd find that fewer than half of the parents play video games more than an hour a week.

          I

      • Let's not forget the majority of the population doesn't play video games. That's simply a fact. There are more people alive who don't actively play video games at all than who do.

        You just described everything. Like ... literally every hobby, every sport, every indoor / outdoor activity aside from eating and shitting.

        You fail to realise that even small markets have large monetisation potential. Most people don't game, you are correct. It is *ONLY* a $230billion dollar industry. No money to see there simply because only a minority of the population do it right?

        • You just described everything. Like ... literally every hobby, every sport, every indoor / outdoor activity aside from eating and shitting.

          You fail to realise that even small markets have large monetisation potential. Most people don't game, you are correct. It is *ONLY* a $230billion dollar industry. No money to see there simply because only a minority of the population do it right?

          The fitness industry is estimated to be 87 billion dollars, just for gyms alone. Many people join a gym in their lifetime. I am skeptical many want to watch others workout!!! Some?..sure...but pretty niche....too niche for Amazon to build a massive company around it.

          230 billion? I am not even sure where they get that number. Where does hardware fit in? Does every GPU bought to mine crypto or train LLMs count as a gaming purchase?...or does that exclude hardware?...however, regardless. You have a

          • I am skeptical many want to watch others workout!!!

            Dude... did you just really tell us all you've never seen dedicated fitness and workout channels on cable TV, or the very big athletics shows that people watched in their spandex for their Sunday morning workout routine before the kids cartoons came one? Next you'll be telling me that you don't know that workout videos are a whole genre on Youtube, or that Twitch has a fitness and health channel which among other things involves people live streaming at the gym. Twitch isn't just for gaming you know.

            230 billion? I am not even sure where they get that number. Where does hardware fit in?

            One com

      • > Maybe I am showing my age, but I am skeptical there is BROAD appeal for watching other people play video games. There's clearly an audience for it, but I just don't get it.

        Not to undermine your broader point, but:

        NFL revenues ~$20B/yr
        NBA revenues ~$12B/yr
        MLB revenues ~$14B/yr
        NHL revenues ~$6B/yr

        There is absolutely an audience for watching other people play games, video or otherwise. The only problem unique to videogame streaming is the barrier to entry is so low the market is beyond saturated. I suppos

        • Re: (Score:2)

          by Luckyo ( 1726890 )

          Games with relatively constant and easily understood basic rules that aren't owned by anyone and can be played by anyone, where people constantly demonstrate physical excellence in an easily discernible ways, yes.

          Video games fail all of these criteria. In fact, the closer video games manage to get to these criteria, the more popular they tend to be in the "waching people play" world. Current undisputed king of being watched as a video game, LoL has a relatively constant ruleset, is fairly easily understood

        • Re: (Score:2)

          by jcdr ( 178250 )

          Exactly.

          I am old enough to have observed the gradual transformation of sporting activities into extremely predatory commercial monopolies with total media complicity. This is completely abnormal and it’s crazy how many people still don’t understand the extent of the problem, even with so many scandals and abuse stories.

          Of course, there is a curiosity to see the best in their respective fields, but people more like to participate and progress by sharing and spending time with others with respect.

        • > Maybe I am showing my age, but I am skeptical there is BROAD appeal for watching other people play video games. There's clearly an audience for it, but I just don't get it.

          Not to undermine your broader point, but:

          NFL revenues ~$20B/yr NBA revenues ~$12B/yr MLB revenues ~$14B/yr NHL revenues ~$6B/yr

          There is absolutely an audience for watching other people play games, video or otherwise. The only problem unique to videogame streaming is the barrier to entry is so low the market is beyond saturated. I suppose the monopoly control that the sports leagues have over their domains also helps keep their audiences trapped... =Smidge=

          As a stereotypical nerd (at least for my generation), I hate sports, always had. However, I envied those who could just watch a Pats game with 6-12 of their closest friends over some beer and snacks. I love SuperBowl parties. I want to throw one...just not watch the actual game. I love bar food and think I could throw an amazing party...plus I just hang out with their wives at these things. :) I liked going to Busch Stadium and watching a game when I was younger. I don't follow any sports, but I get w

      • Re: (Score:3)

        by jcdr ( 178250 )

        Money and sex seem to be the only things that motivate you.

        I'm 53, a father of two adult sons, and I LOVE how people hangout remotely on Twitch. There are a lot of amazing people sharing a part of their lives live, their skills, their art, their travels, their discussions, etc... Twitch and Discord use the same model of moderators and all benefit two from much more respectful communities than on other major 'social' (but actually toxic) network.

        We live in a society of social apocalypse incapable of renewing

      • You could say the same about people who like to watch live streams of sportsball matches, but that is a very profitable business; at least for everyone except the actual owners of the sportsball teams.

      • Maybe I am showing my age, but I am skeptical there is BROAD appeal for watching other people play video games. There's clearly an audience for it, but I just don't get it.

        Here's the thing. And I say this who used to work as a video game developer at Amazon back when Twitch was first acquired. You don't get it. And neither do I.

        But despite whatever's going on with the industry and layoffs, I think Twitch was one of the savviest purchases Amazon could have made for their entertainment brand. I have coworkers whose teenage kids get home from school, and instead of turning on the TV and watching Saved By The Bell or some shit like I did, they flop down on the bed, open up Twitch

      • I do pop in once in a while; there's this cowboy who speed runs old NES games and it's interesting to see the glitches / strategies, involved. But for the most part... I'd rather play a game myself instead of watch someone else do it.

        There is something to be said for organized, high-level play, that can be interesting, but sitting down to watch some rando?

        Not putting it down, people seem to like it. I just don't see the mass appeal.

        • There is something to be said for organized, high-level play, that can be interesting, but sitting down to watch some rando?

          That is how I consume Twitch. Or did, at least.
          There was a time I couldn't imagine why someone would watch someone else play video games, but then I came across a Destiny streamer who would solo content that was made for 3-person fireteams. I like his content, and the production value is off the charts with greenscreen shorts after a death. But, I'm only watching when it is that high-level play you mention. If he plays normal content or content with a fireteam, I'm not watching. Plenty are, but for me it fe

      • Re: (Score:2)

        by c ( 8461 )

        but I am skeptical there is BROAD appeal for watching other people play video games. There's clearly an audience for it, but I just don't get it.

        For most games, yeah. However, I actually enjoy watching long-form "no commentary" playthroughs of games that have strong stories. With the modern graphics we're seeing now, it becomes very cinematic.

        But I definitely don't want to listen to some dipshit ranting while waving a controller.

    • Apologies for replying to myself in advance.

      But this casts their aborted decision to "allow tits" on twitch in a whole new light doesn't it? Desperation? Yeah?

      • But this casts their aborted decision to "allow tits" on twitch in a whole new light doesn't it? Desperation? Yeah?

        It was also a pretty silly move, because the live cam adult entertainment biz is already quite crowded by both companies trying to cash in on it and amateur "gig economy" adult entertainers.

    • it shot up like crazy. I'm not sure why but I'd bet money if I looked into it I'd find market consolidation was the culprit.

    • Well, it's not news that moving your infrastructure to "the cloud" is actually typically a huge extra cost, and despite what "cloud" providers say, the quick scalability it provides can't beat competent provisioning on price. All this proves is that holds true even if you actually own said "cloud."

    • Re: (Score:2)

      by znrt ( 2424692 )

      i'm at a loss what "tech" even means in this context: does it really take 1500 jobs to run a streaming service? what are they, hamsters?

  • Astounding how every job is now a "chief"? Title inflation is insane in the workforce now.

  • Negative money is money (Score:3, Interesting)

    by Goodsuburbanite ( 10439816 ) on Tuesday January 09, 2024 @10:06PM (#64145745)
    I wish I could start a business and bleed money but still survive.

  • Too many employees? (Score:3, Informative)

    by Papaspud ( 2562773 ) on Tuesday January 09, 2024 @10:11PM (#64145759)
    Not sure how it takes 1500 people to run Twitch, seems like they are just cutting fat. A lot of middle managers/ office warriors are about to find out they have been replaced by AI.

    • Re:Too many employees? (Score:5, Insightful)

      by phantomfive ( 622387 ) on Wednesday January 10, 2024 @01:51AM (#64146013) Journal
      Because if you are a manager, the only way you can "grow" in your career is to manage more people, and there are two ways to do that:

      1) Get promoted up the ladder (slow)
      2) Hire more people below you

      Managers have an intrinsic motivation to slow down their underlings so they can hire more people. Some succumb to that motivation, others don't. The ones who do are the ones who get promoted.

      • By that notion they also have a motivation to overpay so they can go up the budget ladder too. I've not experienced this though.

        • Not for lack of trying. Good managers try to get the people on their team as much money/promotion as possible. That's why companies have salary ranges for given positions, etc.

      • Re: (Score:2)

        by CQDX ( 2720013 )

        You forgot the "Mirror, Mirror" option for career advancement. Sabotage/eliminate competing groups and inherit the spoils.

    • Not sure how it takes 1500 people to run Twitch, seems like they are just cutting fat. A lot of middle managers/ office warriors are about to find out they have been replaced by AI.

      1 manager.
      1 server administrator.
      1 advertising sales clerk.
      1496 titty police measuring cleavages of twitch streamers to see if it it complies with current policy.
      1 policy writer since the manager changes his opinion every day on what does and doesn't constitute too much titty.

      I wish this were a joke.
      https://safety.twitch.tv/s/art... [twitch.tv]
      https://safety.twitch.tv/s/art... [twitch.tv]
      https://safety.twitch.tv/s/art... [twitch.tv]

      • You completely forgot to mention the B-ark. Custodians, food service, parking lot attendant, and phone sanitizers.

      • Re: (Score:1)

        by Luckyo ( 1726890 )

        Problem isn't that recent. Until this latest brouhaha, this army of censors was there to punish political wrongthink. They basically cleared anyone who was to the right of Mao from the platform by looking at the most minute out of context quotes and most inane interpretations of hate rules. To the point where they ended up banning a lot of centre-left and left figures, down to the likes of Destiny. The pansexual, blue haired open cuckold coastal liberal who does debates. He wasn't left wing enough, and so d

    • Re: (Score:2)

      by CQDX ( 2720013 )

      Aren't most (all?) the content creators not employees? So aside from keeping servers running and running the back office so bills are paid and payroll done, who is valuable to the company?

  • Has it really been 9 years since Amazon messed up the platform?

    I really want my roku to stream twitch again; I simply refuse to use fire sticks.

  • Well, all those jobs created by free money from the last financial crisis are evaporating now that interest rates are going back up. What a surprise!
  • What will happen to them if they don't have a platform to stream? Will they have to get a mundane job in the business world or just move to OnlyFans?

    • What will happen to them if they don't have a platform to stream? Will they have to get a mundane job in the business world or just move to OnlyFans?

      They will have to move out of their parents' basement, spare bedroom, or guest house? OH THE HORROR!

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