Twitch is facing another brutal round of layoffs as parent company Amazon slashes tens of thousands of corporate jobs amid a major pivot to artificial intelligence.
Amazon confirmed plans to cut 14,000 corporate jobs this year, about 4% of its white-collar workforce, as part of a sweeping cost-cutting and restructuring effort. According to Reuters, the number could climb to 30,000 as layoffs began on October 28.
The move is part of Amazon CEO Andy Jassy’s strategy to trim bureaucracy and lean heavily into AI and automation. Jassy previously said artificial intelligence will play a central role in automating routine work, making some roles obsolete.
“These latest moves signal that Amazon is likely realizing enough AI-driven productivity gains within corporate teams to support a substantial reduction in force,” Sky Canaves, an eMarketer analyst, told Techloy.
Twitch hit with mass layoffs as Amazon cuts 14,000 employees
The cuts reportedly hit major Amazon business units, including Amazon Web Services, Prime Video, and Twitch. It marks another major blow for the livestreaming platform after a 35% workforce reduction in 2024 that saw 500 employees let go.
Among those confirming their departure was longtime employee ‘Tarfu,’ an 11-year veteran who helped build Twitch’s fraud program.
“I was the person who built the entire fraud program at Twitch… I was the one keeping bad actors off Twitch who steal and abuse revenue on the platform. I guess I did my job too well since they let me go,” he wrote on social media.
Influencer Marketing Manager JDubb also revealed he’d been laid off after nine years, calling it “the best job I’ve ever had.”
Ex-Twitch boss blasts Amazon for replacing jobs with AI
Former Twitch exec Marcus ‘djWHEAT’ Graham blasted the layoffs, warning that replacing experienced employees with AI or less invested staff would hurt creators.
“For 11 years [Tarfu] fought on behalf of Twitch creators, viewers, and mods. That’s gone. Now it is gonna be a robot or someone who doesn’t give a f**k… and that is bad for all,” Graham said.
“Twitch is where it is at right now because it continues to fire/lose people who actually gave a damn, people who would fight for you everyday. This is another name added to that list. Lots of people who care still exist at Twitch, but those numbers are dwindling.”
Amazon acquired Twitch in 2014 for nearly $1 billion, but reports last year indicated the site was losing money despite $2 billion in annual revenue, leaving insiders worried Amazon would view the platform as a “zombie brand.”
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