Learn Twitch CEO’s 6 a.m. Electronic mail to Workers Saying 500 Job Cuts

• The CEO of Twitch emailed workers at 6:00 a.m. asserting 500 layoffs.
• Dan Clancy additionally shared the identical memo in a weblog submit on the corporate web site. 
• He mentioned he is “disenchanted” it was leaked after Bloomberg reported the information on Tuesday. 

Twitch is slicing 500 jobs – greater than a 3rd of its workforce – its CEO, Dan Clancy, informed workers on Wednesday.

The Amazon-owned livestreaming platform posted a memo in a weblog submit and despatched the identical message to workers by e mail. It was despatched at 6:00 a.m. PT, in keeping with a time stamp on the e-mail reviewed by Enterprise Insider, and titled “a troublesome replace about our folks.”

The announcement got here after Bloomberg reported Tuesday that Twitch was slicing about 35% of its workforce. Clancy mentioned he was “disenchanted” that the “data leaked” and apologized to workers.

“Our hope was that you simply all would hear from us this morning and really shortly perceive how this impacted your function and we have been sadly not in a position to speed up the timeline, which I do know could be very irritating,” he wrote.

Regardless of cost-cutting efforts and effectivity measures, Twitch is “meaningfully” larger than it wanted to be, Clancy additionally mentioned.

He added that its restructuring was based mostly on “conservative predictions” for progress, however that enterprise “stays sturdy” because it paid streamers greater than $1 billion final 12 months.

The corporate launched a “Accomplice Program” in June, the place streamers can get a 70% income cut up from month-to-month subscriptions and present subscriptions for as much as a 12 months. Nevertheless, payouts have been capped at $100,000.

Twitch did not instantly reply to a request for remark from Enterprise Insider.

Are you a present or former Twitch worker?
Contact Jyoti Mann at jmann@insider.com or DM on X at @jyoti_mann1

Learn the total e mail that Clancy despatched to workers:

Group,

At present I’ve some extremely troublesome information to share. As you all know, we now have labored arduous over the past 12 months to run our enterprise as sustainably as potential. Sadly, we nonetheless have work to do to rightsize our firm and I remorse having to share that we’re taking the painful step to scale back our headcount by simply over 500 folks throughout Twitch. This can be a really arduous day. Our service exists to empower communities to create, collectively, and each single one in all you has performed an important function in fostering our neighborhood and furthering that mission. 

I do know a lot of you’re questioning why that is occurring. Over the past 12 months, we have been working to construct a extra sustainable enterprise in order that Twitch can be right here for the long term and all year long we now have reduce prices and made many selections to be extra environment friendly. Sadly, regardless of these efforts, it has turn into clear that our group continues to be meaningfully bigger than it must be given the dimensions of our enterprise.  Final 12 months we paid out over $1 billion to streamers. So whereas the Twitch enterprise stays sturdy, for a while now the group has been sized based mostly upon the place we optimistically count on our enterprise to be in 3 or extra years, not the place we’re at at this time. As with many different corporations within the tech area, we at the moment are sizing our group based mostly upon the present scale of our enterprise and conservative predictions of how we count on to develop sooner or later.

This choice, whereas extremely troublesome and painful, is important to make sure that we are able to proceed to serve our streamers sustainably with out impacting their means to help their careers on Twitch. A part of what makes this so troublesome is the fervour that so a lot of you share for the Twitch neighborhood, and the arduous work you’ve got put into serving our streamers. 

I do know you all are questioning what this choice means for you and your function transferring ahead. Whereas we all know it’s higher to listen to in regards to the influence nose to nose, we understand that it’s extra essential to share the information with the affected people as shortly as potential. With that in thoughts, here is what you’ll be able to count on throughout the subsequent hour. 

In case your function is affected by this choice and you reside within the US, Canada, Brazil, Mexico, or Singapore.

Within the subsequent jiffy, I’ll ship an e mail to this group of individuals sharing the unlucky information that your place is being eradicated and essential particulars on all the pieces we’re doing to help you thru this transition. Afterward, your org chief will attain out instantly by way of e mail with extra particular details about your severance bundle and to provide the choice to talk with them individually. These 1:1 conferences will happen over the following few days. 

In case your function is affected by this choice and also you’re in any nation not listed above. 

Within the subsequent jiffy, you’ll obtain an e mail from Lauren Nunes with extra particular data on the method and subsequent steps, which fluctuate by nation. 

For everybody who’s leaving Twitch at this time, I understand how essential it’s to say goodbye to your colleagues, so you’ll retain entry to Slack and your e mail till 1 PM PT (in case you are in Singapore, you should have entry till 12 PM native time).

In case your function was not affected. 

I’ll ship one other e mail to this group confirming your function was not affected by this choice. Afterwards, I plan to host regional All Fingers all through the day so that you all can hear from me instantly. Particulars on the time of those periods and calendar invitations will come by later this morning. 

I additionally wish to acknowledge how disenchanted I used to be yesterday that this data leaked. I’m sorry for the entire nervousness that it prompted over the past a number of hours. Our hope was that you simply all would hear from us this morning and really shortly perceive how this impacted your function and we have been sadly not in a position to speed up the timeline, which I do know could be very irritating. 

I wish to shut with my sincerest apology to everybody who’s leaving Twitch. You might be a few of the most gifted, dedicated, and artistic folks I’ve ever labored with. Thanks for all the pieces you’ve got carried out to assist us construct Twitch and foster our neighborhood. 

We’re all right here as a result of we imagine within the energy of Twitch and our neighborhood – and whereas our mission is way from over, proper now our focus is on caring for one another. I’m all the time grateful for a way nicely you all help and present up for each other throughout our greatest and most troublesome moments. 

– Dan