Thunderful Initiates Second Restructuring Effort, Resulting in Further Job Cuts

Thunderful has unveiled a new restructuring plan, which will lead to job losses for approximately 100 employees, both within and outside of Sweden. The company aims to bolster its third-party publishing endeavors while scaling back internal game development, affecting a substantial portion of its development team. Administrative and managerial positions will also be impacted. The expected outcome is an annual cost reduction of SEK 80-90 million ($7.2-8.1 million), improving cash flow. Although the company saw significant cost reductions from its earlier restructuring efforts, it failed to meet revenue targets and is now dealing with negative cash flows. By transitioning its focus to external publishing, Thunderful seeks to minimize fixed costs and gain greater flexibility in game releases, leveraging external talent and resources while maintaining some internal development capabilities. According to CEO Martin Walfisz, 'A second restructuring in under a year is regrettable, but it is necessary to ensure the company's long-term viability.' The strategic shift towards publishing external games will reduce fixed costs, increase flexibility, and enhance cash flow control. Despite the difficult decision, the company acknowledges the dedication and talent of its employees.