Thunderful has unveiled a second restructuring initiative, leading to additional job cuts

Thunderful has initiated another restructuring plan that will involve letting go of up to 100 staff members both within Sweden and internationally.

The company intends to pivot more towards publishing ventures with third-party developers and decrease its commitment to in-house project creation, which will lead to layoffs affecting a substantial segment of its development workforce.

Roles in administration and management will also see reductions.

The objective is to achieve annual cost reductions and enhance cash flow by amounts ranging from SEK 80 million ($7.2 million) to SEK 90 million ($8.1 million).

Although their previous restructuring efforts earlier this year led to notable cost reductions, Thunderful stated they did not reach revenue expectations and are currently grappling with negative cash flows.

The shift towards collaborating on publishing with external partners is aimed at lowering fixed expenses and allowing for more "flexibility" in the use of external expertise and resources to launch games, though some internal development will be maintained.

"Announcing another restructuring within such a short timeframe is unfortunate, but we see no alternative for ensuring the long-term viability and resilience of the group," remarked Thunderful CEO Martin Walfisz.

"By strategically focusing on external game publishing, we can cut fixed costs, enhance flexibility, and better manage cash flow. We have numerous talented, dedicated employees, and we regret having to make these difficult decisions."

In January, Thunderful implemented a restructuring strategy that led to a 20% reduction in its workforce, with an aim to save SEK 90 million ($8.1 million) to SEK 110 million ($9.9 million) annually.