Twitch "isn't profitable" admits CEO, in wake of recent layoffs
Twitch CEO Dan Clancy has admitted the Amazon-owned streaming platform isn't profitable. Clancy led a Q&A stream on Twi…
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Did anyone expect them to be profitable?
Yeah just keep laying off staff until they are, amirite?
Statements like this are always saved for when a corp justifies layoffs. The reality is that the American tax code is made to encourage corps to spend all the money you make (in which case corps don't pay tax at all). VCs and big tech leverage their positions to massively increase power whether the individual company has savings or not
I mean, yea? Income less operating expenses is profit, so if you can lower operating costs, without compromising the service, your bar to profitability is by definition lower. This is why it is called “right sizing”.
Fta:
"I want to be clear that we still have more than enough resources," said Clancy. "We are still a reasonably sized organisation. We're still going to be able to service your needs. We're still going to be able to improve the product.
My understanding is they tried to break into Korea and absolutely failed when local telecoms jacked up rates to "discourage" competition, and Korea is just corrupt enough to let it slide. I'm guessing there were ideas for other expansion opportunities as well, but with gaming being less popular after COVID lockdowns and investment money drying up, they need to shut down those riskier growth opportunities.
Last year's layoffs were largely around the Korea expansion, and this year is probably similar. I'm guessing they were working on some projects and didn't see the return they were hoping for, hence the pullback.
