The CEO of popular streaming platform Twitch, Dan Clancy, has opened up about the recent layoffs within the company. Clancy revealed that Twitch is currently not profitable and emphasized the need to run the platform sustainably.

During a community chat session on Twitch, Clancy expressed, “We’ve implied this before, where we say we need to run it sustainably, but I’ll be blunt: we aren’t profitable at this point. Amazon has been extremely supportive of Twitch and a big thing for being sustainable over time is ensuring that we don’t lose money.”

Twitch recently confirmed that over 500 people are being laid off, with Clancy acknowledging that the organization is larger than necessary considering the size of the business.

“This decision, while incredibly difficult and painful, is necessary to ensure that we can continue to serve our streamers sustainably without impacting their ability to support their careers on Twitch,” Clancy explained.

Despite the layoffs, Clancy reassured Twitch users that the platform will still be able to meet their needs. He emphasized Twitch’s focus on growth and improvement, although acknowledging that resources may be limited.

Other tech companies, such as Unity and Discord, have also announced significant staff cuts this week, reflecting a broader trend in the industry.

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