Twitch Goes BROKE! CEO Admits It's NOT Profitable for Amazon?!
2,958After another round of layoffs, it's come out that Twitch is NOT profitable and has NEVER been profitable according to CEO Dan Clancy. Amazon has owned Twitch for nearly a decade and can't get it to make money. So how long until they just shut it down or sell it off?
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Additional Context:
The recent news from Twitch, the Amazon-owned live streaming platform, revolves around significant layoffs and the company's struggle with profitability. Twitch CEO Dan Clancy announced that the company laid off over 500 employees, which represents about 35% of its global workforce. This decision was driven by a combination of factors, including the current macroeconomic environment and slower user and revenue growth than expected.
Clancy admitted that despite the presence of high-profile streamers on the platform, Twitch has not been a profitable service. He emphasized that the company still has sufficient resources to continue operating but felt the cuts were necessary to ensure Twitch's future. Clancy mentioned that the company had grown larger than needed, contributing to the decision to reduce the workforce. However, he did not explicitly address the company's spending on streamers, which has been substantial.
The layoffs at Twitch are part of a broader wave of job cuts at Amazon, which include approximately 9,000 employees across multiple divisions. This comes after Amazon's previous round of layoffs in November, when it reduced its workforce by about 19%. Twitch's layoffs occurred shortly after the resignation of co-founder and former CEO Emmett Shear.
The layoffs have raised concerns and discussions about Twitch's business model and the challenges it faces in a competitive streaming market. While Twitch saw a significant increase in viewership during the 2020 COVID lockdown and has remained the dominant livestreaming platform, it continues to face competition from other platforms like Facebook and YouTube, as well as legislative challenges from legacy media.
As of now, Twitch has not publicly disclosed any specific plans for providing additional support to the affected employees, such as severance or job placement services.
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