Clouds are gathering over Twitch: the popular streaming platform remains unprofitable, and employees fear a new wave of layoffs

Over the past few years, streaming service Twitch has been in trouble due to scandals, constant rule changes, an exodus of popular streamers and unfair monetisation.

Twitch recently laid off around 900 employees, but it seems that this move doesn't seem to have solved the platform's problems.

Here's What We Know

The Wall Street Journal spoke to an unnamed Twitch representative who spoke about the service's dire financial situation.

He mentioned that although the platform, owned by Amazon, earned $2bn in 2023, this amount is not enough to cover expenses, so Twitch remains unprofitable.

Employees of the platform are sure that the problems will only increase and in the near future will not do without another, perhaps even larger, wave of layoffs.

Amazon and Twitch do not have much time to normalise the financial situation, as streamers, and with them viewers, continue to actively leave for other services, such as YouTube and the new platform Kick, which is rapidly gaining popularity and offers users less strict rules.

At the moment, the situation on Twitch is so serious that there is no certainty that the service can overcome the crisis.

Source: The Wall Street Journal