Layoffs in the video game industry continue: Thunderful Group announces layoffs of 20% of its workforce

Unfortunately, after a "turbulent" year for the video game industry in 2023, the phenomenon of mass layoffs continues in 2024. Recently, one of the companies that announced layoffs was Thunderful Group, which owns and develops the SteamWorld series and such games as Image and Form Games, Rising Star Games, Zoink, Coatsink, Jumpship, and Headup Games. Thunderful Group will lay off 20% of its employees. According to the company's website, it has more than 500 employees, so approximately 100 people will lose their jobs.

Here's What We Know

The company explains the layoffs by saying that there are "excessive investments" that have been made in recent years but "have not been justified in the current industry climate, which has particularly affected it from the adverse market conditions". The company says it will "focus on strategic assets with the best long-term prospects."

"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. 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 hopes that the restructuring programme will help "strengthen its long-term competitive position". In addition to laying off staff, the company will also consider selling "non-strategic" assets.

Source: GamingBolt