In January 2024, Twitch laid off about 500 employees, which was the result of the platform being unprofitable for many years. Following this, the company's CEO Dan Clancy admitted that the company is still not profitable. Due to such statements, employees are concerned about the future of the service. This was reported by IGN.
According to insiders, Twitch may turn into another "zombie brand" of Amazon, which acquired the platform in 2014 for $970 million. The list of "zombie brands" already includes such services as Goodreads and the retail website Woot, which are also owned by Amazon.
Employees are also concerned that they may face another round of layoffs due to the company's poor financial performance.
Over the past few years, the company has faced many new challenges. The growth in the number of platform users has largely stopped, and at the same time, the growth in advertising sales has stopped. In addition, existing users also started spending less money on subscriptions and donations.
According to the company's internal estimates, the platform may lose about $250 million in revenue by the end of 2025. Nevertheless, an Amazon representative noted that the company remains confident in Twitch's potential.