Analytic Dreamz: Notorious Mass Effect - "TWITCH LAID OFF 35 PERCENT OF IT'S WORKFORCE, CONFIRMED BY TWITCH CEO DAN CLANCY"

Starting point is 00:00:00 You know, it's a privilege to have a job, and at a particular juncture, you're going to find yourself having to either switch jobs or, unfortunately, you may find yourself being laid off. And that's exactly what a lot of workers at Twitch is currently undergoing, as there's been a significant workforce reduction. I'm talking about 35% of its employees, approximately 500 workers, is now laid off. So why is this happening? Well, financial losses and basically the top executives citing a lot of reasons, such as Twitch's CEO, Dan Clancy, basically comment out and mentioning the closure of the Korean office in February due to prohibitively expensive. operations. Interesting choice of words, but hey, that's the reason that he gave. So that's the reason that we're going to stick with.

Starting point is 00:01:01 Because if you don't know, Twitch reportedly does not make any money. I know it's hard to look at somebody like Kai or Aden who basically found that their career off of Twitch and then made millions of dollars, right? And then the main platform itself isn't making money. It's kind of hard to make that make sense because usually the way, the way that I've been told is that if company A pays you a certain amount, then they'll probably get in three to four times that themselves

Starting point is 00:01:32 at least. So for Twitch, I think it's different because if you think about, well, if you think about it, Twitch is huge. I mean, obviously. And I think the reason for this is because of network fees and just how expensive it is to run a live stream channel or just servers.

Starting point is 00:02:00 So I would say that the high operation of supporting live stream content on a global scale and it reportedly costing them $1,000 per month in expenses with each high volume streamer. So not a thousand a month just in total. With each high volume streamer, it cost them about $1,000 per month and expense. So in turn, that is when Twitch realizes that if they're not making money, well, they got to start doing something because it's only going to be so long that the owner, which is Amazon, is going to keep funding them just to break even. At some point, they would like Twitch to actually have some type of increase in return on investment, if that may. makes sense so with Twitch paying over a billion with a B to streamers in the last year the layoffs are probably confusing to some because they probably think that Twitch is just rolling around

Starting point is 00:03:15 in cash simply because they're giving out these millions to creators I mean that's the whole reason I brought up Kai and Aiden but when the owner of Twitch Amazon is also laying off employees back in November of 2023 from well yeah they're also laying off employees then you come to realize that every company is finding themselves I'm not going to say at a loss as far as revenue but I would say that companies are realizing that they don't need as big of a workforce to achieve certain results because why in the world would you think cutting down the workforce would increase revenue well i think the most expensive thing for a boss is the workers as far as like the overhead because you have to pay people to work and that's probably the biggest fee and then

Starting point is 00:04:18 next to that i think it's like operational costs i could be wrong but hey that's you know that's just my guest estimation or my guess so for network uh for twitch to basically talk talk about all these network problems and how i wants to prioritize revenue or ad revenue and how the part t's uh i'm trying to say this by them prioritizing ad revenue not being successful as far as the the tactics that they've went about increasing ad revenue it leads to them trying to make it up in some other way. Like if they're going to keep remaining unprofitable for Amazon, nearly a decade after the acquisition,

Starting point is 00:05:04 then they probably need to drastically change some things to try to bring in more income. So what does all these words mean? Basically, for you, probably nothing. But if you work for Twitch, if you're looking to work for Twitch, or just any company in general, you'll probably realize that a lot of companies are laying off people, and specifically for Twitch, I just wanted to lay out some of the reasons because obviously Twitch has a huge implication on the gaming direction.

Starting point is 00:05:35 I mean, one of the biggest moments in gaming history, like history, like of all time, happened on Twitch when Ninja was streaming with Drake and Travis Scott, which ultimately brought gaming to another stratosphere as far as the average person wanting to game. so Twitch has been instrumental in so many movements when it comes to bringing gamers and just the gaming just entertainment space in front of the average consumer to the point where it's it's sad to see them go through this but at the same time obviously

Starting point is 00:06:16 they will have to figure out something to increase ad revenue because it's not like the losing viewership. I mean, I think I saw somewhere their popularity and usership is still increasing. They are just struggling to turn a profit, which I know sounds crazy to the average person. But I'm telling you that network fees comes with that added usership. Like, like I said earlier, for every high volume user, I'm trying to find that stat again. For every high volume user they basically pay about a thousand per month and expenses so with the huge cost of

Starting point is 00:07:05 live stream content especially on a global scale like twitch i just think that this layoff is basically to try to i mean forget twitch the layoffs in general in the video game in industry because it's been a lot of if you've been paying attention to every company they've been laying off people it's bigger than twitch and more of a particular statement on the video game industry as a whole as also unity software i mean they announced that uh 25% staff reduction is in um is in play so i'm not going to blame the pandemic but it's interesting how after the 2020, a lot of these companies start to reevaluate the marketing, well, not marketing strategies, but basically there are funds and how they allocate them to the point where they

Starting point is 00:08:02 realize that the workforce needs to be cut a significant amount. So at that point, I mean, what can you say? Because I always believe in going where you want it. So if one company doesn't want, if one company doesn't want you, then, you know, hopefully. I mean, hey, you know, hopefully somebody else would. You know, somebody will gladly take you off whatever company lays you off. You know what I'm saying? So for Twitch though, you know, it's sad for all those people who got laid off. And basically, I think including 2023, it's been about a thousand job layoffs for Twitch, if I'm not mistaken.

Starting point is 00:08:51 this move yeah because the previous two rounds of layoffs of 2023 totaling around 400 positions so now it's close to a thousand in job losses in less than a year like i said the twitch CEO's main reason for it was um due to prohibitively expensive operations so that being said click my link tree in my bio let me know one of my social medias what do you think about twitch laying basically a thousand people off

Analytic Dreamz: Notorious Mass Effect - "TWITCH LAID OFF 35 PERCENT OF IT'S WORKFORCE, CONFIRMED BY TWITCH CEO DAN CLANCY"

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