Broadcaster Twitch plans to shrink its workforce, which will affect 400 employees.
The cuts come as its parent Amazon plans to slash another 9,000 staff in various divisions, including AWS cloud and advertising units.
The layoffs were characterized as an effort to strengthen Twitch’s long-term business outlook.
New Twitch CEO Dan Clancy said: “Like many companies, our business has been impacted by the current macroeconomic environment, and user and revenue growth has not kept pace with our expectations.
“In order to run our business sustainably, we’ve made the very difficult decision to shrink the size of our workforce.”
Long-serving chief executive Emmett Shear recently announced his retirement.
Need Career Advice? Get employment skills advice at all levels of your career
Clancy took over the position from his previous role as president, where he was already in charge of the company’s day-to-day operations.
While Twitch is still a growing platform in terms of both community and cultural impact, the firm is unlikely to approach its early pandemic highs.
With people stranded at home, hours spent in online spaces increased, as did hiring.
But current economic uncertainty has dragged tech businesses to find new measures to thrive.
It is leading many of them to scale back and reduce the size of their teams.