Why Amazon And Twitch Are Laying Off 9,400 More Employees

Amazon plans to lay off 9,000 more employees primarily on Amazon Web Services (AWB), advertising, the streaming site Twitch and human resources. The layoffs will take place in the coming weeks CEO Andy Jassy said. The company has already dismissed 18,000 members starting in November 2022.

AWS and advertising have been high margin parts of Amazon’s business according to The Information. Cloud computing rivals Google
GOOG
and Microsoft
MSFT
have struggled to compete with AWS. On the other hand, Walmart
WMT
and Target are increasingly competing with Amazon’s success in advertising. Jassy said that Amazon will continue to do limited hiring in strategic areas according to Jassy.

One might guess that the previous administration under Jeff Bezos was too optimistic and hired more employees than were needed. Jassy is tightening the payroll as he looks at a more competitive environment.

Twitch is an American video live streaming service that focuses on video game live streaming, including broadcasts of esports competition, in addition to offering music broadcasts, there is creative content and “in real life” streams. Twitch is operated by Twitch Interactive, a subsidiary of Amazon.com.

Twitch CEO Dan Clancy said in a separate blog post that his division is cutting more than 400 jobs. He wrote “user and downer revenue growth has not kept pace with our expectations.”

Other Amazon divisions have not immediately announced layoff figures, but it is likely that they will also take action and trim their staff.

POSTSCRIPT: One must admire Andy Jassy for his efforts to reduce the size of his Amazon team. 2023 will be a tough business year and he will create a more profitable, stable company. I hope tha members that are being discharged will find employment in Seattle or nearby.