The energy drink manufacturer G FUEL is one of the biggest sponsors for gaming influencers on YouTube and Twitch. But now Twitch streamers like “demonjoe” (Destiny 2) are ending their business relationship with the company. The reason is a scandal from June 2022. G FUEL is said to have already lost more than 75 partners and 50 million followers on social media as a result of the scandal.
Where is the information coming from? The site Digiday published an insider report on the toxic workplace G FUEL on September 7.
For this, they obtained a statement from the company, spoke anonymously with some former employees, and also with partners who are now distancing themselves from G FUEL.
CEO is said to have insulted employees and fired them afterward
What is the scandal? G FUEL fired seven talent managers on June 16. The day before, five of them reportedly complained to the HR department that the head of the company used derogatory language during a meeting. The fired employees expressed their displeasure about the dismissal on Twitter.
CEO Cliff Morgan is said to have referred to former employees as “lazy motherfuckers”. The company has admitted this. However, it is claimed that this was not an insult directed at individuals, but rather a general description of the employees’ work.
Additionally, Morgan is said to have referred to current employees as “slow-witted” and pressured them to work harder. He reportedly ended the call by half-heartedly assuring that no one would be fired, according to anonymous sources.
A spokesperson for the company states that employees were let go due to “a lack of performance” as part of a “restructuring”. Some employees received severance for 6 weeks.
This is the “normal” way to earn a lot of money on Twitch, although many streamers also use sponsorship deals. In these deals, G FUEL is at the forefront:
More than 75 partners are said to have left G FUEL in protest
These are the effects: The talent managers are important points of contact for the influencers they work with. Following their dismissal, more than 75 partners are said to have terminated their collaboration with G FUEL, as reported by Digiday.
The 7 talent managers who were fired, including 3 women, are reported to have managed 34 of these 75 or more influencers.
This is what one of the people leaving says: “demonjoe” is a Twitch streamer and YouTuber about Destiny 2. He terminated his contract with G FUEL after learning of the allegations. He told Digiday:
It was a big part of my income through YouTube, Twitch, and so on. I’m giving up quite a lot.
demonjoe
He was allowed to terminate the contract without issues or problems from G FUEL; only the paperwork took a week to complete.
Who else is leaving? After the report from Digiday, large partners of G FUEL, such as NFL quarterback Kurt Benkert, have also distanced themselves.
As a result of the departures, G FUEL is said to have lost over 50 million followers on social media, according to Digiday. This apparently refers to G FUEL’s total reach when considering all channels of the partners involved.
When we talk about Twitch, we often refer to the superstars who have secured large exclusive contracts with the platforms. But for mid-tier streamers on Twitch, such sponsorship deals like with G FUEL are essential:
How much money do “normal” Twitch streamers earn? Who can live “well” from Twitch?
