Home Twitch CEO: “Twitch is not profitable”

Twitch CEO: “Twitch is not profitable”

Twitch CEO Dan Clancy has stated the live-streaming platform is not profitable, just days after news broke on significant job cuts impacting around 500 employees.

The Amazon subsidiary is also pulling out of South Korea as financial pressures continue to mount against the embattled company. Last month, “prohibitively expensive” costs were cited as the reason for the departure from the Korean market, which is said to be ten times higher than operations in other countries.

Clancy has been frank about the situation facing Twitch, but as reported by GGRecon, he warned that things could get worse and offered a rationale on why the staff cuts were necessary.

“I’ll be blunt, we aren’t profitable at this point,” he said.

“So while [Twitch] still has enough resources, [we] won’t be able to do as much as [we] could have done before.”

Important mission ahead

Despite the size and scale of the resources enjoyed by its parent company, that is not enough to guarantee the future of Twitch. It is also not benefitting from its position as a market leader within live streaming, highlighting the challenges Clancy and his peers face to turn around its fortunes.

On losing 35% of the platform’s workforce, the CEO commented:

“In terms of making the decision, we need to ensure Twitch is the right size so we can be here for a long time.”

“We have a very important mission. It’s critical Twitch is not just here today, tomorrow, but 50 years, 100 years from now. 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.”

The stress fractures are showing, and Twitch is under pressure. That is clear, but the streaming giant should still be able to navigate these uncharted waters toward a calmer vista.

Rival platforms like Kick and Rumble will be watching on with interest, seeking to create more than a ripple in the sea.

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech industry for major developments, new product launches, AI breakthroughs, video game releases and other newsworthy events. Editors assign relevant stories to staff writers or freelance contributors with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Graeme Hanna
Tech Journalist

Graeme Hanna is a full-time, freelance writer with significant experience in online news as well as content writing. Since January 2021, he has contributed as a football and news writer for several mainstream UK titles including The Glasgow Times, Rangers Review, Manchester Evening News, MyLondon, Give Me Sport, and the Belfast News Letter. Graeme has worked across several briefs including news and feature writing in addition to other significant work experience in professional services. Now a contributing news writer at ReadWrite.com, he is involved with pitching relevant content for publication as well as writing engaging tech news stories.

Get the biggest tech headlines of the day delivered to your inbox

    By signing up, you agree to our Terms and Privacy Policy. Unsubscribe anytime.

    Tech News

    Explore the latest in tech with our Tech News. We cut through the noise for concise, relevant updates, keeping you informed about the rapidly evolving tech landscape with curated content that separates signal from noise.

    In-Depth Tech Stories

    Explore tech impact in In-Depth Stories. Narrative data journalism offers comprehensive analyses, revealing stories behind data. Understand industry trends for a deeper perspective on tech's intricate relationships with society.

    Expert Reviews

    Empower decisions with Expert Reviews, merging industry expertise and insightful analysis. Delve into tech intricacies, get the best deals, and stay ahead with our trustworthy guide to navigating the ever-changing tech market.