Thunderful announces restructuring that will cut 20% of its workforce
Thunderful Group has announced a restructuring programme to decrease costs, which will include both "significant staff reductions" and potential divestments, the company said.
Around 20% of its workforce will be affected, Thunderful said, with the firm hoping to see the effects of the restructuring on its finances from the second half of 2024.
The aim of the restructuring is to improve the firm's competitiveness, Thunderful added, by lowering costs and re-focusing on areas that bring it the most profitability.
Thunderful is aiming for annual cost reductions between SEK 90 million ($8.6 million) and SEK 110 million ($10.5 million) as well as "improved cash flow with an equivalent amount," it said.
Thunderful full-year profits rose to $106.3 million in 2023, up 15.3% year-on-year, thanks to strong Q4 releases and good performances of its distribution branch. Its 2023 revenue was down 3.5% to $293 million.
The need for restructuring was "identified" by the new management team and Thunderful's board of directors, the company said. Massive founder Martin Walfisz was named CEO back in May 2023and the firm went through a leadership shakeup in December.
Walfisz commented: "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."
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