What to Expect If Further Layoffs Happen at Twitch
Why Are Twitch Employees Worried About Layoffs?
Concerns are growing among Twitch staff about potential additional layoffs. Reports from The Wall Street Journal suggest that the streaming platform may face another round of redundancies due to slowing user growth. If this happens, it would follow previous layoffs in March 2023, October 2023, and January 2024, which affected at least 900 employees.
Why Is Amazon Concerned About Twitch’s Profitability?
Amazon, Twitch’s parent company, has been scrutinizing the platform’s profitability. Despite Twitch reportedly generating around $2 billion in advertising and revenue in 2023, Amazon is concerned about its overall profitability. Amazon CEO Andy Jassy, who took over in 2021, has emphasized the need for profitable operations and shown little tolerance for businesses that aren’t meeting financial expectations.
Employees at Twitch worry that the platform might become a “zombie brand” within Amazon, similar to Goodreads, which was acquired by Amazon in 2013. An Amazon spokesperson reassured that the company views Twitch as a long-term investment, highlighting its unique ability to attract hard-to-reach audiences and its strong position in the livestreaming market.
In January, Twitch CEO Dan Clancy indicated that the company was adjusting its organization to match current business scales and more conservative growth predictions. Twitch has also recently updated its policies on sexual harassment, introducing new measures to flag inappropriate chat messages following allegations involving prominent streamer Dr Disrespect.
Twitch employees worried about being dismissed may want to consider speaking with an experienced employment lawyer before it occurs to understand their employment rights upfront. In the situation that Twitch announces further layoffs, affected employees should promptly review their severance entitlements and seek legal counsel to ensure they receive the compensation they deserve.
Severance Benefits for Twitch Employees
If Twitch proceeds with additional layoffs, non-unionized employees in Canada who lose their jobs due to downsizing or corporate restructuring are entitled to comprehensive severance benefits. Depending on various factors, these severance packages can provide up to 24 months of compensation. If an employee does not receive their full entitled severance, they can seek legal recourse to ensure they are treated fairly and receive appropriate compensation.
At Whitten & Lublin, our employment lawyers are committed to helping individuals understand their rights and secure the severance they deserve. If you are impacted by potential layoffs at Twitch, we encourage you to contact us for a consultation. Reach out through our online portal or by calling (416) 640 2667.