Thunderful has announced its second restructuring in less than a year’s time. This time, it could see up to 100 people lose their jobs within the company.
The announcement came on Thursday via the company’s website.
“This newly announced program follows the cost-saving measures introduced earlier this year, as well as the divestment of the Group’s distribution business to manage previously incurred net debt,” Thunderful said. “Whilst significant reductions in cost levels were achieved this year, revenue targets have not been met and the Group is still struggling with negative cash flow.”
This restructuring will see the company move focus to external publishing with third-party games. Thunderful says it will “reduce the Group´s fixed costs and allow for greater flexibility, enabling faster, diverse game releases by leveraging external talent and resources in a balanced manner, while still retaining some internal development capacity.”
“It is regrettable to announce a second restructuring of Thunderful in less than a year, but we unfortunately see no other alternatives in order to ensure the Group’s long-term sustainability and resilience,” Thunderful CEO Martin Walfisz said.
As part of the moves, somewhere between 80-100 people in and outside of Sweden will lose their jobs. Those in management and administration will also be impacted by the layoffs.
Thunderful expects to have one-time costs of $22.8M – $27.4M as part of separation costs after negotiating with unions. In total, however, they anticipate the job cuts to improve the overall cash flow by $73M – $82.2M.
In 2024, there have been nearly 14,000 known jobs lost due to layoffs across more than 160 companies.
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