SUMMARY
- Twitch is undergoing a row as the company plans to lay off around 500 employees.
- Twitch CEO Dan Clancy went on record, talking about the current state of the company.
Twitch CEO Dan Clancy recently got on record amidst the recent row of layoffs at the company. Twitch recently announced that it was laying off about 500 employees. Dan addressed the community during a livestream recently revealing the current state of the company.
Dan mentioned that the streaming platform is not profitable at this point. However, he expressed his hope that the platform can survive, focusing on the need for “sustainability.” Twitch has let go of hundreds of its workforce to stay sustainable over the last couple of years. And the recent layoffs prove that the company still seems to be in a not-so-good state.
Dan Clancy talks about Twitch’s profitability
After the row of layoffs, Dan went on record to state, “We have implied this before, where we say we need to run it sustainably. But I’ll be blunt, we are not profitable at this point.” Amidst the layoffs, a lot of fans were wondering if Amazon would eventually take a call to shut the platform.
— Culture Crave 🍿 (@CultureCrave) January 11, 2024
“The answer is emphatically no,” Dan said. He added, “Amazon has been extremely supportive.” Dan Clancy took control of Twitch back in March 2023. Ever since he has maintained his individuality compared to his predecessors by actively being a part of the community. In fact, Dan himself streams on his personal channel on Twitch frequently. He also collaborates with other North American streamers regularly.
However, his tenure also happens to be at the same time when the company is witnessing several layoffs causing an upset among the community. Although the streaming space has boomed in the past few years and Twitch remains to be at the forefront of that boom, there is also stiff competition from rivals including Kick, YouTube, and Facebook Gaming. In spite of its success, Twitch seems to be negative when it comes to profits.
How does Twitch plan to survive?
The streaming platform recently announced that it would be cutting back on around 35% of its workforce. To be more transparent about the issue, Twitch CEO Dan Clancy addressed a variety of issues in a live stream. He emphasized how the parent company Amazon has been supportive throughout.
Twitch plans to lay off 35% of its workforce, which means 500 employees will be out of a job as soon as tomorrow pic.twitter.com/UNXkjO2FZE
— The Streaming Owl (@TheStreamingOwl) January 9, 2024
He further emphasized that the need to downsize seems to be more feasible. He claimed that his job as the CEO is to make sure the website doesn’t lose money so that it can be there for the long term. “A big thing about being sustainable over time is ensuring we don’t lose money,” he stated.
Dan also took the opportunity to brush off any fears that community members may have about Amazon’s plans for the future. He stated that they wish to be there in the long run, and for that, they must make sure not to lose money and sustain themselves.
