Sharing News About Layoffs via Livestream (Insider Comms™ From Twitch)

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Layoffs are now an annual event at Twitch. Earlier this year the streaming platform—owned by Amazon—laid off 35%(!) of its workforce, affecting more than 500 employees. This is on top of 400 employees who were cut from the company the prior year (and a few C-suite execs who left with them).

CEO Dan Clancy sent a less-than-eloquent memo to all employees explaining the latest round of cuts (without acknowledging this is now a trend). (Note to remaining Twitch employees: brace yourselves for Q1 2025 😬.)

While I credit Clancy for sending a note in his voice—the memo is mostly bereft of polished corporate speak—the content is somewhat sloppy and a few thoughts are run-on, making parts hard to follow. Also:

• Jargon around “sizing” the company requires careful reading or re-reading to grasp.

• Repetitive uses of “incredibly difficult” and “unfortunate” make for weak delivery.

What’s more, leadership is given an out. Affected employees get the bad news twice: First, in Clancy’s all-employee note. Second, in an email from their department leader.

• In that second note employees get “the option to speak with [their leader] individually.” In other words, suddenly unemployed Twitchers have to request the bad news be given to them in a dignified way.

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Compare the Twitch layoff memo to:

• When You Announce Layoffs Right Before Christmas (Insider Comms From Etsy) (🔒)

• 'Alexa: Lay Off Hundreds of Employees' (Insider Comms From Amazon) (🔒)

• A Tech CEO Explains Layoffs (Insider Comms From Snap) (🔒)

• Insider Comms™ is a series that shows how other corporate comms professionals communicate with their audiences—the good, the bad, and the ugly.

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📺 Amazingly, Clancy followed the bad news with a video chat and Q&A session with employees and Twitch customers. (Such refreshing transparency is evidence Amazon’s PR department works in a different building.)

Clancy’s hour-plus conversation on the layoffs and the soundness of Twitch’s business is much more interesting than his all-employee memo.

• It’s clearer, more engaging, more honest (“we’re not profitable”), and—because you can hear his voice and see his face—much more engaging.

• Clancy spends most of the time taking questions from viewers, which run the gamut from Amazon’s role in the decision, business plans, and his high compensation.

• (Link to the video behind the paywall).

The livestream—which, by the way, wasn’t advertised to affected employees—doesn’t excuse the poorly communicated layoffs. Here are five ways to improve the communication—email, video, or otherwise:

• Clarity: The memo does not specify which roles are eliminated and barely describes why layoffs are needed (we need to “rightsize”). More information helps employees understand the context and necessity of the decision.

• Personal touch: While Clancy attempts to be compassionate, the memo could benefit from a more personal touch. It feels somewhat formal and corporate given the emotional weight of the content. Including personal anecdotes could help soften the message.