Thunderful, a big company, has decided to change how it works to become better and stay strong in the business world. They’re doing this by cutting 20% of their workers, which means some people will lose their jobs. This article will explain why Thunderful is making these changes and what it could mean for the company and the people involved.
Thunderful Announces Restructuring Plan That Will Cut 20% Of Jobs
Thunderful Group has revealed a plan to cut costs through restructuring. The company said that this plan will include “significant staff reductions” and possible sales of companies.
Thunderful said that the restructuring will affect about 20% of its employees. The company hopes to see the results of the restructuring of its finances in the second half of 2024.
Thunderful Group have announced a restructuring program to strengthen the Group's long-term competitive position. Over-investments made in the last few years are the primary reason.
The result is annual cost reductions of ~$10m and the reduction of workforce of 20% (~105 staff). pic.twitter.com/uu2OFdEEc5
— MauroNL (@MauroNL3) January 17, 2024
Thunderful also said that the change is meant to make the company more competitive by cutting costs and refocusing on the areas that make the most money for it.
Thunderful wants to cut costs by between SEK 90 million ($8.6 million) and SEK 110 million ($10.5 million) a year and add improved cash flow with an equivalent amount.
“Mixed results” were reported by the publisher for Q3 in November. Its sales went up by 4% in the first nine months of the year, but its losses grew from SEK 9.2 million ($876,000) in 2022 to SEK 22.3 million ($2.1 million).
The new management team and Thunderful’s board of directors “identified” the need for a reorganization, the company said. In May 2023, Massive founder Martin Walfisz was named CEO. In December of that year, the company had a leadership change.
Walfisz said, “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.”
“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.”
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