Twitch Can Become a ‘Zombie Brand,’ According to its Employees

Twitch continues to accumulate bad news. After the dismissal of more than 400 people during the past year of 2023, and more than 500 employees at the beginning of this 2024, the streaming platform may be on the verge of another wave of layoffs by the end of this same year.

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A recent report, published by The Wall Street Journal, has made it very clear that Twitch employees see the platform as a ‘zombie brand.’ In other words, Twitch would be in a similar boat as Goodreads, a website where there are hardly any workers due to its low economic performance. After all, the latter is the ultimate problem.

According to Dan Clancy, Twitch CEO, the streaming platform continues being non-profitable to date. This means that after a decade of being acquired by Amazon, Twitch is not generating profits, but rather constant losses within the annual accounts of the infamous digital store.

In addition to this, Twitch’s business volume is very small compared to what Amazon represents today. According to this report, Twitch generated $667 million in advertising revenue during this past 2023, while commercial revenues reached $1.3 billion. Despite these figures, they only represent 0.5% of Amazon’s total revenue.

Although Twitch was expected to continue growing steadily after the boom during the COVID-19 pandemic, the reality is that the audiovisual service is experiencing fewer subscriptions, fewer viewers, and less advertising revenue. In summary, all indicators are worsening on a platform that is no longer profitable. Unfortunately, a new round of layoffs seems feasible…

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