There is concern among Twitch employees that the streaming platform may experience additional layoffs due to ongoing financial losses.
Recent revelations about Twitch’s financial struggles have caused unease among employees and insiders, who are concerned about the possibility of additional layoffs. Despite already laying off hundreds of staff and increasing the cost of subscriptions, the Amazon-owned streaming site continues to face challenges.
The Wall Street Journal reports that Twitch’s top spenders are decreasing their investments in the platform and there has been a decline in new users, causing concerns that the level of engagement is slowing down significantly.
Despite generating $2 billion in annual revenue, Twitch is reportedly operating at a loss. This has been the case for ten years since it was acquired by Amazon in 2014 for almost $1 billion.
According to reports, employees are concerned about the possibility of Twitch announcing another round of job cuts in the fall as part of its annual performance evaluation. In January 2024, the company laid off 500 employees, which accounted for 35% of its entire workforce.
Twitch’s CEO has come under fire as the company continues to lose money.
There are also worries among insiders that Twitch is being referred to as a “zombie brand”within Amazon, as they have observed several projects being abandoned due to underwhelming performance. The staff has drawn comparisons between Twitch and the book review app Goodreads, as well as the online discount store Woot.
Despite the ongoing controversy, staff have directed their criticism towards Twitch CEO Dan Clancy, who has been traveling the world and dining with streamers while the site continues to struggle financially.
Clancy defended his travels by stating, “If I were running a manufacturing company, I would need to meet with the suppliers of our raw materials and the customers who purchase our widgets. Similarly, our streamers play a crucial role, similar to Twitch, in our business.”
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