Amazon.com Inc (NASDAQ:AMZN, ETR:AMZ) streaming subsidiary Twitch is poised to lay off hundreds of staff after the business has failed to turn a profit since being taken over, reports say.
According to Bloomberg, the company is set to announce 500 layoffs as early as Wednesday, representing 35% of its headcount.
This follows cuts of around 400 jobs last year, with Bloomberg attributing the latest layoffs to “concerns over losses”.
Amazon acquired Twitch for almost US$1 billion in 2014, with the streaming service having failed to turn a profit in the nine years since.
In December, chief executive Dan Clancy said the company was planning to stop operating in South Korea come February due to high costs and network fees.