Thunderful Group has announced a restructuring programme to decrease costs, which will include both “significant staff reductions” and potential divestments, the company said.

Around 20% of its workforce will be affected, Thunderful said, with the firm hoping to see the effects of the restructuring on its finances from the second half of 2024.

The aim of the restructuring is to improve the firm’s competitiveness, Thunderful added, by lowering costs and re-focusing on areas that bring it the most profitability.

Thunderful is aiming for annual cost reductions between SEK 90 million ($8.6 million) and SEK 110 million ($10.5 million) as well as “improved cash flow with an equivalent amount,” it said.

The publisher reported “mixed results” results for Q3 back in November. While its revenues saw a 4% lift in the first nine months of the year, losses increased from SEK 9.2 million ($876,000) for the same period in 2022 to SEK 22.3 million ($2.1 million)

The need for restructuring was “identified” by the new management team and Thunderful’s board of directors, the company said. Massive founder Martin Walfisz was named CEO back in May 2023 and the firm went through a leadership shakeup in December.

Walfisz commented: “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.”