According to people familiar with the plans, Twitch, the streaming division of Amazon.com (AMZN.O), is expected to lay off 35% of its workforce, or roughly 500 employees, as reported by Bloomberg News on Tuesday.
It was reported that the announcement of the move might come as soon as Wednesday.
According to the article, nine years after Amazon acquired the company, the business is still not profitable.
Upon receiving a request for comments from Reuters, Twitch did not immediately reply.
Due to excessive operational expenses and network fees, Twitch CEO Dan Clancy said in December that the firm would cease operations in South Korea in February of this year.
In March of last year, the company let go of more than 400 workers because its revenue and user growth had fallen short of projections.
