Thunderful Announces Its Second Restructuring Program In One Year

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Chad

Staff member

85%

Nov 14, 2024

Publisher Thunderful has confirmed that it is launching another restructuring program aimed at reducing its workforce by up to 100 employees.

As reported by GamesIndustry.biz, Thunderful is looking to "increase its focus on third-party publishing and reduce the production of internally developed projects", therefore resulting in significant redundancies within the company's own development teams. In addition, roles within administration and management will also be affected.

This comes after a previous restructuring program from the beginning of 2024, after which Thunderful reported a "significant reduction in cost levels". Despite this, it still managed to miss its revenue targets and is "struggling with negative cash flows".

As such, this second round of redundancies will theoretically allow Thunderful to aim for annual cost savings and improved cash flow between SEK 80 million ($7.2 million) and SEK 90 million ($8.1 million). Emphasis on "theoretically", mind you, since the company's first restructuring program really should have left it in a healthier position.

Alas, Thunderful's CEO Martin Walfisz stated the following:

"It is regrettable to announce a second restructuring of Thunderful in less than a year, but we unfortunately see no other alternative to ensure the group's long-term sustainability and resilience.
"The strategic move towards publishing games from external partners allows us to reduce fixed costs, increase flexibility, and better control cash flow. We have many talented and dedicated employees, and it is with great regret that we are forced to part ways."

Do you have any thoughts on Thunderful's current second restructuring programe in 2024? Let it be known with a comment in the usual place.

[source thunderfulgroup.com, via gamesindustry.biz]