Thunderful Cuts 60 Jobs at Coatsink Subsidiary in Major Gaming Industry Restructuring

Swedish gaming company Thunderful announced on November 28, 2025, that it will eliminate approximately 60 positions at its subsidiary Coatsink as part of a comprehensive restructuring effort. The workforce reduction represents a significant downsizing for the gaming publisher and developer, which has been grappling with challenging market conditions and shifting industry dynamics. The layoffs primarily target Coatsink's operations, marking one of the most substantial job cuts in Thunderful's recent history as the company seeks to streamline operations and reduce costs amid declining gaming revenues.

Context of the Decision

The Thunderful layoffs reflect broader challenges facing the gaming industry in 2025, as companies continue to adjust from the pandemic-era boom that led to aggressive hiring and expansion. Thunderful's decision to restructure Coatsink operations comes as the gaming market experiences a significant correction following years of over-investment and inflated expectations.

The restructuring effort aims to align the company's workforce with current market realities and revenue projections. Gaming companies worldwide have faced declining user engagement as consumers return to pre-pandemic entertainment habits, while rising development costs and increased competition have squeezed profit margins. Thunderful's leadership indicated that the workforce reduction is necessary to maintain long-term sustainability and focus resources on the company's most promising projects and franchises.

Impact on Operations

The 60-person workforce reduction at Coatsink will likely affect multiple departments within the subsidiary, including game development, quality assurance, and support functions. Coatsink, known for developing virtual reality games and mobile titles, has been a key component of Thunderful's portfolio since its acquisition.

The layoffs are expected to impact ongoing development projects, potentially leading to delays or cancellations of certain titles in Coatsink's pipeline. The company will need to reassess its project roadmap and may shift focus to fewer, higher-priority releases that align with market demand and available resources.

Thunderful has indicated that the restructuring will help consolidate operations and eliminate redundancies across its various studios and subsidiaries. The company plans to retain core talent in critical areas while reducing overhead in non-essential functions.

Company Financial Background

Thunderful has faced mounting financial pressure throughout 2025, with declining revenues from both its publishing and development divisions. The company, which went public in recent years, has seen its stock price fluctuate significantly as investors grow increasingly cautious about gaming sector investments.

The Swedish company built its portfolio through strategic acquisitions, including the purchase of Coatsink and other independent studios. However, the integration costs and ongoing operational expenses from these acquisitions have strained the company's financial resources during a period of reduced gaming industry growth.

Thunderful's publishing business has also encountered challenges as the market becomes increasingly saturated with new releases, making it difficult for smaller titles to gain traction and generate significant revenue. The company's leadership has acknowledged the need to be more selective with both development projects and publishing partnerships moving forward.

Industry Outlook

The gaming industry continues to experience widespread workforce reductions in 2025, with major publishers and developers implementing similar cost-cutting measures. The sector is undergoing a significant adjustment period as companies right-size their operations after years of rapid expansion during the pandemic gaming boom.

Industry analysts note that smaller gaming companies like Thunderful face particular challenges in the current environment, as they lack the financial resources of major publishers to weather extended downturns. The consolidation trend is expected to continue, with stronger companies potentially acquiring distressed competitors or their assets.

The shift toward live-service games and mobile platforms has also created challenges for traditional game developers, requiring new skills and approaches that many existing teams struggle to adapt to quickly enough.

Conclusion

Thunderful's decision to cut 60 jobs at Coatsink represents a strategic pivot toward operational efficiency and financial sustainability in an increasingly challenging gaming market. While painful for affected employees, the restructuring positions the company to focus resources on its most viable projects and markets. The success of this workforce reduction will largely depend on Thunderful's ability to maintain development quality and market competitiveness with a leaner organization, while navigating the ongoing industry transformation that continues to reshape the gaming landscape.