Twitch, an Amazon streaming division, said on Tuesday that it will cease operations in South Korea in February of the next year due to excessive operational expenses and network fees.
“Twitch has been operating in Korea at a significant loss, and unfortunately there is no pathway forward for our business to run more sustainably in that country,” Dan Clancy, the company’s CEO, wrote in a blog
He added that the company worked hard to lower operating costs in order to stay in business, noting that network prices in Korea are still ten times more expensive than in most other nations.
Over 400 workers were let off by Twitch in March after the company’s user and revenue growth fell short of projections.
