Thunderful CEO says restructuring program off to a 'good start,' will take 'full effect' later this year

Swedish conglomerate Thunderful has released its first financial report since announcing a restructuring program that will result in 20 percent of the company's employees being laid off. For context, Thunderful had 519 employees at the end of 2023, meaning over 100 people could lose their jobs.

Thunderful, which has published titles like Planet of Lana, Somerville, and Steamworld Build, announced the program in January with a view to driving growth and expanding its "profitability prospects."

Now, in its fiscal report for the year-ended December 31, 2023, the company has explained the restructuring program has made a "good start" and is expected to save between SEK 90 million ($8.7 million) and SEK 110 million ($10.7 million) per annum. It added that a new strategic focus and reworked processes will result in significant improvements within its game segments, and described 2024 as a year of transition. 

It's unclear how many jobs have actually been cut so far, but Thunderful CEO Martin Walfisz reassured investors the program is "off to a good start." He also reiterated the company is laying off workers to course correct following "past over-investments."

"Although the work has just begun, we're off to a good start in reviewing the structure of the Group and coming to a share view on how it should be managed in the future," he said. "Since the end of the quarter, we have initiated a comprehensive restructuring program to address past over-investments and focus our activities on areas with the greatest potential for growth and profitability." 

The program is expected to hit its stride in the second half of 2024. It comes after annual net revenue fell by 4.6 percent year-on-year to SEK 2.8 billion. Operating profit, meanwhile, decreased by 410 percent. That resulted in the company posting a loss of SEK 609 million for the full-year.