Thunderful to cut up to 60 jobs at Coatsink as part of major restructuring effort

• Coatsink has secured new contracts but cannot sustain its full workforce as major projects wind down.
• The restructuring targets up to $3m in savings through 2026.
• All proposed redundancies will go through a formal collective consultation under UK employment law.

Swedish company Thunderful Group plans to lay off up to 60 employees from its co-development division Coatsink.

The Thunderful board said the restructuring is necessary to align costs with current contracted revenue. 

“Subsidiary Coatsink, which has been leading Thunderful Group´s co-development segment, has for the last few quarters focused on securing ongoing and new client engagements," Thunderful said in a post. 

“New contracts have been secured, but with its largest projects wrapping up, and a more challenging co-development market, the business is currently unable to support all existing employees."

The plan includes cutting 50 to 60 jobs and targeting cost reductions of SEK 10 to 12 million ($1m to 1.2m) in the first half of 2026 and SEK 25-30m ($2.6m-3.1m) for the full year.

All planned job cuts will go through a formal collective consultation with employee representatives, as required under UK employment law.

Ownership shift 

Thunderful bought Coatsink in 2020 for £23m ($30.4m), but the studio’s founders departed in August following Atari’s move to acquire 82% of Thunderful for $5.3m. 

Founded in 2009, Coatsink has released VR titles such as Augmented Empire and Jurassic World: Aftermath, while its latest launch was Islanders: New Shores on PC, console and mobile. It's currently developing Men in Black: Most Wanted for Meta Quest.