Thunderful announces second restructuring program resulting in more layoffs

gamesindustry.biz:

Thunderful has announced another restructuring program, which will result in redundancies for up to 100 employees in and outside of Sweden.

The games firm said it aims to increase its focus on third-party publishing and reduce the production of internally developed projects, resulting in a "large portion of the development team" being affected by layoffs.

Positions in administration and management will also be impacted.

It aims for annual cost savings and improved cash flow between SEK 80 million ($7.2 million) and SEK 90 million ($8.1 million).

Thunderful noted that while it did see "significant reductions in cost levels" from its restructuring program earlier this year, the company missed revenue targets and is "struggling with negative cash flows."

It said that by shifting its focus to external publishing, fixed costs will be reduced, allowing for "greater flexibility" in releasing games using external talent and resources. It will retain some internal development.

"It is regrettable to announce a second restructuring of Thunderful in less than a year, but we unfortunately see no other alternative to ensure the group's long-term sustainability and resilience," said Thunderful CEO Martin Walfisz.

"The strategic move towards publishing games from external partners allows us to reduce fixed costs, increase flexibility, and better control cash flow. We have many talented and dedicated employees, and it is with great regret that we are forced to part ways."

In January, Thunderful announced a restructuring program that resulted in 20% of its workforce being cut. It aimed to produce annual cost reductions of between SEK 90 million ($8.1 million) and SEK 110 million ($9.9 million).