Thunderful Group, composed of game studios like Coatsink, and publishers Rising Star Games, revealed plans for a restructuring program affecting a fifth of its workforce. Read on to know more.
Thunderful Group Announces Restructuring Program Affecting 20% of Staff
Over-Investing Cited As Reason for Layoffs
In a press release, Thunderful Group's CEO Martin Walfisz stated that the internal restructuring is essential to streamline the business and position it as a stronger player in the market. Actions will include both significant staff reductions and evaluation of divestment, potentially selling off some of its "non-strategic assets". The CEO said there was "no alternative other than to reduce costs and focus the business on areas with the best future growth and profitability prospects."
He further added, "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."
The CEO hoped that the impact of the layoffs would be reflected in its financial performance in the second half of 2024. The decision to restructure was attributed to over-investing in recent years, which the company deemed "unsustainable amid challenging market conditions."
Multiple Studios Look to be Affected
The group, consisting of game developers Image & Form and Zoink AB, combined to make Thunderful Development during the second half of 2020. Additional acquisitions of studios followed suit, including Worldless publishers Coatsink in October 2020 and "Steamworld Build" makers, The Station, in November 2020.
Likewise, the holding company handles its own publishing division, Viewfinder publisher Thunderful Publishing, along with "Harvest Moon: One World" publisher Rising Star Games. The studios affected by the restructuring program were not mentioned.
Continuing Trend of Layoffs in the Video Game Industry
The move aligns with the wider layoff trend in the gaming industry, where various companies have undergone restructuring and staff reductions. Companies recently impacted by layoffs include Borderlands developer Gearbox and Unity on its fourth round of layoffs.
Source:
Thunderful Group to restructure operations for strengthened long-term competitiveness
Thunderful Group to implement restructuring programme
affecting around 20 percent of staff
