Twitch recently lowered their payouts (again) [1], making streamers and creators furious. More blood from the stone.
Twitch is bad for discovery, and they're continually losing creators to YouTube(Gaming).
Amazon doesn't report all of the key financials from Twitch, but it's expensive to support infra for everybody who wants to be a streamer. Only the top 1% draw an appreciable audience, and the ads cater to a demographic that doesn't have substantial disposable income.
If Amazon didn't have other interests in gaming (Luna, their own MMOs and game studios, etc.) that synergize well with Twitch, they would probably cut the losses.
As a comparison, Reddit recently cut their own streaming product [2].
[1] https://techcrunch.com/2022/09/21/twitch-subcription-revenue...
[2] https://www.reddit.com/r/pan/comments/yl5zzd/update_on_the_f...