SteamWorld owners Thunderful to fire 20% of staff due to "over-investments made in the last few years"

“These investments have proven unsustainable given the current industry climate.”

A round of videogame company layoffs following a period of “unsustainable” spending? It must be a Wednesday. Swedish conglomerate Thunderful Group AB - whose corporate possessions includeSomervilledeveloper Jumpship and several teams working on theSteamWorldgames - have announced that they will lay off around 20 percent of their staff as part of a restructuring program that “stems primarily from over-investments made in the last few years”.

“The program aims at lowering costs and increasing focus on areas with the best future growth and profitability prospects,” readsa press release(viaGame Developer). “Actions will include both significant staff reductions and evaluation of divestment of non-strategic assets.

“The need for Thunderful to enact these changes stems primarily from over-investments made in the last few years,” it continues. “These investments have proven unsustainable given the current industry climate, which has resulted in the Group being particularly affected by challenging market conditions. The new management team and the board of directors have identified the need to restructure the Group and focus its efforts on the strategic assets with the best long-term 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,” Walfisz said of today’s layoff announcements. “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.”

Best of luck to everybody affected.