Unlike youtube with videos, Twitch doesn't have the pseudo-monopoly on streaming. Say what you will about Kick, it's gotta be a major stress point for Amazon. Google can justify sinking the cost of youtube because of the monopoly it has on hosted video. The sunk cost of Twitch is only that, a cost. I don't think they are gaining anything from it.
I'm expecting the fallout from these layoffs to affect twitch pretty quick