(Reuters) — Twitch, the streaming unit of Amazon.com (AMZN.O), is reportedly planning a significant workforce reduction, cutting approximately 35% of its staff, or around 500 employees, according to sources cited by Bloomberg News on Tuesday.

The announcement of the job cuts is expected to come as early as Wednesday. Despite Amazon’s acquisition of the company nine years ago, Twitch has struggled to turn a profit, as noted in the report.

Twitch has not responded immediately to a Reuters request for comments on the matter.

In December, Twitch CEO Dan Clancy revealed plans to cease operations in South Korea in February, citing high operating costs and network fees as reasons for the decision.

This workforce reduction follows a previous round of layoffs in March of the previous year, where over 400 employees were let go due to the company’s failure to meet expectations in terms of user and revenue growth. The challenges faced by Twitch highlight the ongoing difficulties in achieving profitability within the competitive streaming industry.