Thunderful Group Announces Major Employee Layoffs, Around 20 Percent Of Its Staff Will Be Let Go Due To “Over-Investments” In Recent Years

Thunderful Group as a company has announced restructuring plans for the second half of 2024, which sadly include a major hit for the employees that work there as major layoffs will be happening across the board at the Swedish company. Shockingly, around 20 percent of its staff will be affected, which Thunderful says is due to “over investments” it has made in recent years, according to Game Developer.

Thunderful faces Layoffs

“Actions will include both significant staff reductions and evaluation of divestment of non-strategic assets. The need for Thunderful to enact these changes stems primarily from over-investments made in the last few years. These investments have proven unsustainable given the current industry climate, which has resulted in the Group being particularly affected by challenging market conditions. The new management team and the board of directors have identified the need to restructure the Group and focus its efforts on the strategic assets with the best long-term prospects,” Thhunderful Group said in a press release this morning.

Those investments in question include the acquisition and investment in game companies. Now, employees who worked there are paying the price for the company’s lack of management that, to a lesser degree, is similar to Embracer Group’s situation. Thunderful says it’s planning to spend between 30 million to 40 million SEK (between $2.85 and USD 3.81 million) to put the restructuring plan into place, which they say will hopefully lead to annual cost reductions of between 90 million to 100 million SEK (between $8.57 and USD 9.22 million).

“Since I joined as CEO in the fall of 2023, we have evaluated the current business and the future position of Thunderful. 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,” Thunderful CEO Martin Walfisz added.

Thunderful might be better known for its publishing label, Thunderful Publishing, which has helped release some notable games, including Deadly Premonition 2: A Blessing in Disguise, Pumpkin Jack, Aerial_Knight’s Never Yield, The Gunk, Super Meat Boy Forever, and the series of Steamworld games over the years. The company also owns a handful of game developer studios, including Jumpship, Guru Games, and Image & Form, the latter being the more well-known developer behind the Steamworld franchise.