Twitch made the tough decision to cut over 500 of their employees, something that has become worryingly normal for major tech and gaming companies. In terms of why the company decided to cut so many employees, Twitch’s CEO took part in a Q & A where he revealed why this had to be done.
During the stream (via Eurogamer), CEO Dan Clancy admitted that Twitch has not been a profitable service. While Clancy ensures fans that the company still has enough resources to keep going, they feel these cuts were necessary to ensure Twitch has a future.
Clancy also claims that the company got bigger than it needed to be, which is another reason why over 500 employees were cut. Oddly enough, Clancy doesn’t bring up how the company is spending billions of dollars on streamers, something that was admitted during the open letter sent to ex-employees.
"It's critical that Twitch is here not just today, not just tomorrow, but 50 years from now, 100 years from now,” Clancy explains. “Our job is to run Twitch in a manner that can ensure its prosperity, it's thriving, and it's here for you and your communities that you've built, because I don't think the other platforms are actually like Twitch at all."
While Clancy does ensure that the company will improve in 2024, he does say that they won’t be able to do as much as they’d like. It seems they’re waiting for that one profitable year or for monetization to get better.
Twitch does have its problems, as the company had a hard time controlling streamers who liked to take their clothes off. For a while, implied nudity was a thing that was allowed and even got the attention of many fans. However, these actions also tend to drive away sponsors, making their presence a double-edged sword.
Read More: Twitch Streamers Call For a Better Revenue Split
Fans can still watch Twitch and catch their favorite streamers in the app.
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