Games

I really don't think that's necessary.

My company is a few thousand people, most of those are blue collar factory workers producing or delivering our core product (we design custom trucks for delivery because our product is very dangerous). Our actual corporate staff is like 200-300, and that includes a lot of people handling customer stuff (we're B2B, so marketing, payment processing, etc is mostly manual and catered to specific clients). Our dev team is 40-50 people with four release channels (web, Android, iOS, and Windows desktop app), and is broken down into 7 distinct 5-6 dev teams that are all cross functional and can deliver all products. We do a lot of complex simulations and new feature work, so it's not some boring product ordering service. If we were maintenance-only, we could probably cut that to less than half.

I understand that Twitch has very different problems and thus needs way more staff than us, I'm merely giving an indication that I know how projects generally scale.

Let's look at a somewhat similar company, Valve. Valve has ~360 employees and often has ~11M concurrent users (i.e. people playing a game using their service). They probably don't push as much data as Twitch, but they're in the ballpark, and they build a lot more compelling products, like Steam Deck, Steam Link app, and video games. They're a combination hardware company, game studio, and CDN. Twitch is pretty much just a CDN. I highly doubt the increased load Twitch handles to really need >5x the employees (assuming 500 employees let go is <25% of the total company).