In yet another round of layoffs in the embattled games industry, Thunderful Group, the Swedish holding company that operates a number of game development studios and publishing efforts, has announced a restructuring effort that will include the “divestment of non-strategic assets” as well as a reduction of its work force by around 20% or roughly 100 people.
The group operates studios such as Image & Form (SteamWorld), Zoink (Lost in Random) and Jumpship (Somerville) among others, as well as game distribution efforts in certain regions. In a story that’s all-too common in the current industry landscape and in the fallout of a boom during the height of COVID-19 pandemic lockdowns, Thunderful said the core reason for these changes is over-investment across the last few years becoming unsustainable in the face of the current market climate.
Thunderful Group have announced a restructuring program to strengthen the Group's long-term competitive position. Over-investments made in the last few years are the primary reason.
The result is annual cost reductions of ~$10m and the reduction of workforce of 20% (~105 staff). pic.twitter.com/uu2OFdEEc5
— MauroNL (@MauroNL3) January 17, 2024
“Since I joined as CEO in the fall of 2023, we have evaluated the current business and the future position of Thunderful,” said CEO Martin Walfisz in a statement published online. “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. 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.”
Less than a month in, 2024 has already shown no sign of change from the onslaught of video game and tech industry layoffs we saw in 2023, already claiming casualties across Unity, Twitch, Discord, Lost Boys Interactive, Behavior Interactive and too many more.
