The CEO of streaming platform Twitch, Dan Clancy, has publicly spoken about the company’s recent layoffs, and revealed that right now, “we aren’t profitable.”
This came during a community chat hosted on Twitch yesterday (January 11). Clancy stated: “We’ve implied this before, where we say we need to run it sustainably, but I’ll be blunt: we aren’t profitable at this point. Amazon has been extremely supportive of Twitch and a big thing for being sustainable over time is ensuring that we don’t lose money.”
It was confirmed on January 10 that the company is laying off over 500 people. At the time, Clancy said that “it has become clear that our organization is still meaningfully larger than it needs to be given the size of our business.”
He added: “This decision, while incredibly difficult and painful, is necessary to ensure that we can continue to serve our streamers sustainably without impacting their ability to support their careers on Twitch.”
Back to Clancy’s livestream, and the CEO reiterated his confidence to users of Twitch that “we’re still going to be able to service your needs.”
“We’ve very focused on continuing to grow Twitch, and continuing to make Twitch the place it has been for so long,” he explained. “I want to be clear that we still have more than enough resources, we are still a reasonably sized organization. We’re still going to be able to service your needs, we’re still going to be able to improve the product.
“We won’t be able to do as much as we would have done before, but I think we’re still going to see a lot happening in [2024] that you’ll be very excited about. […] Our focus is on making Twitch the best place to live stream, the best place to build communities.”
This week, it was also confirmed that both Unity and Discord are making large staff cuts, with Unity laying off around 1,800 people and Discord laying off 170.
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