In a recent stream on Twitch, CEO Dan Clancy said that the industry-leading livestreaming site is in a financial crisis. This comes right after they let go of about 500 workers, making some streamers and viewers worry about the future of the platforms.
The company’s struggles revealed
During a livestream, Clancy said plainly, “ I’ll be blunt: We aren’t profitable at this point.” He explained that Twitch got too big too fast, and now they need to be the right size to last a long time. The company has been relying on support from its parent company, Amazon, to stay afloat.
Clancy shared that the platform grew a lot in the past years, citing a common trend in tech companies to size their organizations for future expectations. But now, Twitch realizes it needs to focus on the present. The layoffs are happening to lower overhead expenses, and the decision to end service in South Korea raises concerns about further downsizing.
CEO’s commitment to longevity
Despite the challenges, Clancy emphasized the importance of Twitch’s mission and commitment to long-term prosperity. He stated, “Our job is to run Twitch in a manner to ensure its prosperity and that it can be here for the communities you’ve built.” While the company assures it still has resources to operate, there’s an acknowledgment that it won’t be able to do as much as before.
Twitch says the company will talk more about its plans for 2024 soon. Twitch wants users to know that the platform is still running and is trying to make things better. However, due to financial issues, the company might not do as much as before. People who rely on Twitch as an income source are waiting to see what happens next.
With Twitch and other big livestreaming platforms facing financial troubles, everyone is curious about the company’s next step. We’ll just have to wait and see.
Featured image courtesy: Twitch