AssetID: 53994447
Headline: UNCAPTIONED: Twitch Staff Fear Further Layoffs Amid Profitability Concerns, Wall Street Journal Reports
Caption: Twitch Staff Fear Further Layoffs Amid Profitability Concerns, Wall Street Journal Reports. Staff at Twitch are worried about a potential third round of layoffs later this year, following earlier job cuts of 500 and 400 employees. The Wall Street Journal reports that Amazon CEO Andy Jassy is reviewing Twitch's profitability, expressing little tolerance for unprofitable divisions. With an annual operational review scheduled for autumn, Twitch employees fear further layoffs may be announced. There are concerns within Twitch that the platform could become a "zombie brand" under Amazon, similar to other acquisitions that haven't met expectations. A spokeswoman for Amazon stated that the company sees long-term potential in Twitch, emphasizing its ability to attract unique audiences. According to the Wall Street Journal, internal documents indicate Twitch generated $667 million in ad revenue and $1.3 billion in commerce revenue in 2023, but struggles with profitability. Twitch could lose nearly $250 million in revenue by 2025, as spending on subscriptions decreases and advertising sales plateau. Twitch's position as a leading source of U.S. web traffic has dropped from fourth place in 2014 to 18th, according to network analytics firm Noka Deepfield. Jeremy Forrester, Twitch's VP of Product, mentioned that the layoffs were a step towards making Twitch more sustainable in the long run. Twitch is prioritizing improvements to its mobile app, with over 50% of users accessing the platform via mobile devices, indicating a shift in user engagement trends. Instructions: THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT
Keywords: Gaming,Twitch,Fear,Further,Layoff,Amid,Profitability,Concerns,Wall Street Journal,Reports,Acquisitions,Expectations,Gaming Industry,Benefits,Streaming,Platforms,Lay offs
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