Everyone wants to be on Twitch, as that’s where the viewers, sponsors, fame, and money are. But all of this comes at the expense of Twitch itself, which has been unprofitable for 10 years.
After the dismissal of 500 employees, Twitch CEO Dan Clancy addressed the community in a livestream, revealing that the platform is not profitable at the moment.
The streaming platform, owned by Amazon, has cut hundreds of jobs from its workforce in an attempt to stay sustainable in the last two years, and it seems that it has not yet been able to be in the green.
The service where Ibai and company have become famous has grown exponentially since the last decade, receiving a huge boost of users during the pandemic.
Twitch has been at the forefront of this boom, establishing itself as the most popular website for live streaming despite tough competition from rivals like YouTube and Facebook Gaming.
Despite its success in capturing the majority of the market, it seems that the purple platform is not profitable, as revealed by its CEO:
“We have hinted at it before, when we say that we have to manage it sustainably. But I’ll be frank: right now we are not profitable,” said Dan Clancy yesterday.
An economic problem that is not the current CEO’s fault
Dan Clancy took over Twitch in March 2023. Since then, he has distinguished himself from his predecessors by playing a very active role in the community. Dan himself frequently streams on his platform channel and has regularly collaborated with other North American streamers.
However, his rise to the top of the website also coincided with several layoffs that upset many people, especially after some employees who had lost their jobs claimed they were not informed before the information was publicly announced in a blog.
At the beginning of this week, news came out suggesting that Twitch was going to carry out another major round of layoffs, this time cutting around 35% of its workforce. Following the news, many members of the community expressed their concern about the future of the company.
In an attempt to be more transparent, Dan Clancy has addressed various issues today in a live stream and has praised Amazon for their support.
However, he also emphasized the need to reduce the size in order to remain viable, stating that his job is to ensure that the website doesn’t lose money so that it can be there in the long term.
