Thunderful Group has become the latest company to announce widespread layoffs, with around 20% of staff set to lose their jobs in the coming weeks. According to Thunderful, these “significant staff reductions” are necessary to ensure the future growth of the business, and re-establish competitiveness in the market.
Per details revealed by GamesIndustry.biz, Thunderful aims to reduce costs by around SEK 90-110 million (AUD $13-16 million) while also improving its cash flow to an equivalent amount. To accomplish this goal, around 100 staff will reportedly be let go, and there may be potential divestments for the company in future.
“Since I joined as CEO in the fall of 2023, we have evaluated the current business and the future position of Thunderful,” Martin Walfisz, CEO of Thunderful Group reportedly said. “To ensure and strengthen the viability of the group, we have found no alternative other than to reduce costs and focus the business on areas with the best future growth and profitability prospects.”
Read: Twitch is laying off 500 employees, around 35% of staff
“It has been difficult to make these decisions, and it saddens me that we will have to say goodbye to many skilled colleagues and partners. Nevertheless, I am convinced that this is a necessary direction for Thunderful and that these changes will make the company a stronger player in the market.”
As noted by GamesIndustry.biz, Thunderful achieved “mixed” financial results in its last reported quarter, with only a small 4% revenue rise noted, while losses increased year-on-year. This performance likely contributed to the overarching restructure plans at the company.
With this announcement, Thunderful joins an already grim lineup of games and tech companies initiating layoffs in 2024. So far, we’ve already seen significant job losses at companies including Twitch, Unity, Discord, and Lost Boys Interactive – and we’re likely to see more in the coming months.
Our thoughts are with those now facing job losses in an increasingly difficult period for the global economy and jobs market.
