Twitch Is Still Reportedly Not Making Money for Amazon

Amazon bought Twitch for around $1 billion in 2014, but despite its popularity, the streaming platform is still not profitable, according to a recent report. Could it lead to another wave of layoffs?

The Wall Street Journal says Amazon earned $2 billion in advertising and revenue in 2023, but it's still not enough to get out of the rut. The outlet found out that fewer users are signing up and even its biggest spenders have started paying less, and this grim situation makes insiders worry about new job cuts and Twitch becoming another "zombie brand" like Goodreads, acquired by Amazon in 2013.

Last year, Amazon decided to reduce its headcount by 18,000 employees, then an additional 9,000 workers, and at the beginning of 2024, layoffs reached Twitch.

"Amazon Chief Executive Andy Jassy, who took over in 2021, has led a profitability review at the company and shown little tolerance for unprofitable businesses," said the WSJ (via GamesIndustry.biz) so the apprehension is valid.

However, an Amazon spokesperson told the Journal "it has always taken a long-term view of Twitch and noted its ability to attract harder-to-reach audiences." It "remains confident in Twitch’s potential."

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