Thunderful Group Undertakes Restructuring Efforts, Aiming to Reduce Workforce by 20%

Thunderful Group has initiated a comprehensive restructuring program aimed at reducing costs, which includes significant workforce reductions and potential divestments. The move, affecting approximately 20% of the company's staff, is anticipated to yield financial benefits from the second half of 2024. The primary objective of this restructuring is to enhance the company's competitiveness by lowering costs and focusing on high-profitability areas. Thunderful aims to achieve annual cost savings ranging from $8.6 million to $10.5 million, along with improved cash flow of an equivalent amount. Following mixed Q3 results, including a 4% revenue increase in the first nine months of the year but heightened losses, the need for restructuring was identified by the new management team and the board of directors. CEO Martin Walfisz, appointed in May 2023, stated, 'Since joining as CEO, we have evaluated the current business and future position of Thunderful. To ensure the group's viability, we have found it necessary to reduce costs and focus on areas with the best growth and profitability prospects. Although these decisions are difficult, I am convinced they are necessary for Thunderful's future strength in the market.'