Tech Industry Faces Employee Cuts: Amazon, Xerox, and Unity Software Navigate Harsh Times
Updated: Jan 13
Updated January 11, 2024 3:45 PM EST
By Nilaris Roberts
Gaming
The tech industry is navigating a challenging period, with Amazon's recent cuts highlighting a concerning trend. Last year, tech companies laid off tens of thousands of employees in response to economic challenges and shifts in consumer habits post-pandemic. Xerox recently announced plans to cut 15 percent of its 23,000-person staff, while Unity Software revealed a reduction of 1,800 roles, constituting 25 percent of its workforce.
Amazon, a major player in the industry, disclosed that the layoffs at its streaming platform, Twitch, represented a relatively small percentage within the division, without specifying numbers. Twitch, popular among gamers who stream their online video play, is a significant part of Amazon's Prime offerings, which include fast shipping and other perks for an annual fee.
Despite Amazon's efforts to strengthen its streaming platform, the company has faced challenges. Last year, it laid off 400 people, and in December, Twitch announced the shutdown of its services in South Korea by the end of February, citing "prohibitively expensive" costs. Twitch's CEO, Dan Clancy, explained in a blog post that the recent layoffs were necessary to align the organization's size with its business needs, ensuring sustainable support for streamers without compromising their careers on the platform.
The broader gaming industry has also experienced workforce reductions, with over 9,000 people affected in 2023, according to data from investment management firm Gabelli Funds. Layoffs surpassed historic industry averages, impacting employees at major companies like Epic Games and Microsoft's Xbox.
As the tech industry adapts to changing dynamics, these workforce reductions underscore the challenges companies face in maintaining business sustainability amid evolving economic conditions and consumer behaviors.
Sources:
