Thunderful Group, the parent company of the publisher behind the Steamworld Build game, announced a substantial restructuring program today. Aiming to reduce costs and refocus on profitable areas, the company will cut roughly 20% of its workforce, impacting approximately 100 employees.
This move follows Thunderful’s Q3 2023 results (thanks Gamesindustry.biz), which saw a 4% revenue increase over the first nine months but growing losses compared to the same period in 2022. The need for restructuring was identified by the new management team and board, led by CEO Martin Walfisz, who joined in May 2023.
Steamworld Build was released a month ago and even made it to Xbox Game Pass. Since it was released on December 1, 2023, it likely did not have much of an effect on the Q3 results. However, it’s strange to see a publisher restructuring in a way that costs jobs if a game does well.
The job cuts, expected to affect various departments and sectors, aim to achieve annual cost reductions between SEK 90 million and SEK 110 million ($8.6 million and $10.5 million) alongside improved cash flow. The financial impact of these changes is anticipated to be seen in the second half of 2024.
In addition to staff reductions, Thunderful hinted at potential divestments of non-strategic assets, though details remain undisclosed. The company’s statement emphasizes the aim of becoming a stronger player in the market by streamlining operations and focusing on ventures with the highest growth and profitability potential.
Layoffs and reducing jobs are the go-to for many companies in our industry. It seems to be the quickest way to cut costs, but that normally comes with a reduction in output and work being done. While the company expects things to improve, we’ve heard this from many companies. We’ll have to wait and see if it works.
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