Twitch is Not Profitable

gamerant.com:

In a follow-up livestream after a recent layoff announcement, CEO Dan Clancy confessed that Twitch is not profitable and has been relying heavily on support from parent company Amazon to sustain itself. Twitch just announced a massive round of layoffs, with roughly 500 people affected, and this subsequent statement regarding Twitch's financial stability has left many wondering if the platform's future is in jeopardy.

One of the leading livestreaming platforms, Twitch allows users to broadcast a variety of content to a live audience and engage viewers with special events, channel emotes, and more. While Twich has remained the predominant entity in the livestreaming space for close to two decades, recent competition and changing business models have left the company in an unsteady financial situation. After recent statements from the Twitch CEO, users are fearful that the platform may not last in the long run.

Addressing questions following the recent layoff announcement, Twitch CEO Dan Clancy hosted a town hall livestream, during which he admitted that Twitch is not profitable. Last year saw numerous technology and gaming companies facing layoffs and shutdowns to meet new cost-cutting business models. According to Clancy, Twitch has not been profitable for some time, noting excessive growth and unnecessary expansion as reasons for the company losing money. He explained that Twitch too often looked at optimistic expectations of future needs to determine its structuring when it should have instead focused on where the company is in the present moment. By cutting back on its workforce, Twitch hopes to reduce overhead expenses. As one of its major cost-cutting moves, Twitch is planning to end service in South Korea, leaving