Twitch CEO Dan Clancy has claimed the streaming platform isn’t worthwhile, following huge layoffs on the firm.
Earlier this week, Twitch introduced it will be shedding 35 per cent of its workforce, with over 500 members of employees being let go. It comes after 400 staff had been laid off at first of 2023.
In a letter to employees, Clancy mentioned, “it has grow to be clear that our organisation remains to be meaningfully bigger than it must be given the scale of our enterprise,” earlier than confirming that the corporate had paid out over $1billion (£785million) to streamers in 2023.
“Whereas the Twitch enterprise stays robust, for a while now the organisation has been sized based mostly upon the place we optimistically anticipate our enterprise to be in 3 or extra years, not the place we’re at at this time.”
Following the information, Clancy hosted a Twitch stream the place he defined that Twitch wasn’t making a revenue (through Eurogamer).
Yesterday was a tough day for all of us right here at Twitch. I’m going to go reside at this time on /Twitch at 1pm PDT to reply any questions from the group associated to the layoff, any of our latest bulletins, or anything that’s high of thoughts.https://t.co/sfT9OwmNyw
— Daniel Clancy (@djclancy999) January 11, 2024
“We’ve implied this earlier than the place we are saying we have to run it sustainably however I’ll be blunt: we aren’t worthwhile at this level,” he confirmed. “Amazon has been extraordinarily supportive of Twitch and an enormous factor for being sustainable over time is guaranteeing that we don’t lose cash.”
“We want to ensure Twitch is the precise measurement in order that we might be right here for a really very long time,” he continued, explaining that’s was “vital” that Twitch had a future and existed 100 years from now. “Our job is to run Twitch in a way that may guarantee its prosperity and it’s right here for you and your communities that you simply’ve constructed, as a result of I don’t suppose the opposite platforms are literally like Twitch in any respect.”
“The underside line is we had been larger than we would have liked to be when it comes to the scale we would have liked to be to service your wants,” he added. “I believe we’re nonetheless going to see so much occurring in 2024 that you simply’ll be very enthusiastic about.”
Nevertheless, Clancy did reassure followers that Twitch wasn’t liable to being axed by Amazon. “Amazon is supportive. No probability of this. They simply need us to drive to profitability,” he explained.
Under no circumstances. Amazon is supportive. No probability of this. They simply need us to drive to profitability.
— Daniel Clancy (@djclancy999) January 11, 2024
In June, Twitch tried to vary the way in which advertisers might use the platform however plans had been dropped following backlash from streamers and final month, Twitch was compelled to roll again modifications to its nude artwork guidelines after issues about AI-created imagery was shared by the group.
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