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Thunderful Group to lay off 20% of workforce in the first half of 2024

Approximately 100 staff members will be exiting the company as a restructure gets underway
Thunderful Group to lay off 20% of workforce in the first half of 2024
  • Thunderful Group plans to lay off 20% of workforce in H1 2024
  • The group has over-invested and is now looking to pull back

Approximately 20% of Thunderful Group’s workforce will be laid off in the first half of 2024 as part of a restructuring programme aiming to strengthen the company's "long-term competitive position".

Among the programme’s objectives are lowering costs and increasing focus upon growth areas in the industry, thereby bolstering prospective profits. Layoffs factor into the cost-cutting side, with divestments also being considered like the potential sale of Headup Games.

Winds of change

Thunderful has over-invested and those investments have turned out to be "unsustainable" in the post-pandemic gaming landscape, which took a downturn after the record highs seen when people the world over were stuck indoors.

The new plan will see Thunderful cut annual costs by 90 to 110 million SEK ($8.59 million to $10.5 million), but with 20% of the workforce being laid off costing another one-off expense of up to 40 million SEK ($3.82 million), the full impacts of cost-cutting aren’t expected to be observed until afterwards - in the second half of the year.

As of June 2023 Thunderful had 506 employees, so a 20% workforce layoff means approximately 100 will be let go through the restructure.

"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.

"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."

The "new management team" and board of directors are noted to have identified this restructuring requirement, announced one month on from four new executive appointments in a leadership shift-up.