Steamworld Dig developer lays off 80-100 employees and cancels some in-development games to ensure 'long-term sustainability and resilience'

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This is the second round of layoffs at Thunderful this year.

Steamworld Dig 2
(Image credit: Image & Form)

Thunderful, the studio formed in 2018 through a merger between Steamworld developer Image & Form and Fe developer Zoink, has announced a "strategic restructuring program" that will see an increased focus on third-party publishing, a cutback on internal development, and the games industry's favorite tool for weathering "tough economic headwinds": mass layoffs.

Thunderful said the shift to publishing over development will reduce costs and "allow for greater flexibility, enabling faster, diverse game releases. Alas, it also means that a "large portion" of Thunderful's development team are no longer needed, and so 80-100 employees are expected to be put out of work.

"It is regrettable to announce a second restructuring of Thunderful in less than a year, but we unfortunately see no other alternatives in order to ensure the Group’s long-term sustainability and resilience," Thunderful Group CEO Martin Walfisz said in the restructuring announcement. "The strategic move towards publishing games from external partners allows us to reduce fixed costs, increase flexibility, and better control our cash flow. We have many talented and dedicated employees, and it is with great regret that we are forced to part ways."

Andy Chalk
Andy Chalk
US News Lead

Andy has been gaming on PCs from the very beginning, starting as a youngster with text adventures and primitive action games on a cassette-based TRS80. From there he graduated to the glory days of Sierra Online adventures and Microprose sims, ran a local BBS, learned how to build PCs, and developed a longstanding love of RPGs, immersive sims, and shooters. He began writing videogame news in 2007 for The Escapist and somehow managed to avoid getting fired until 2014, when he joined the storied ranks of PC Gamer. He covers all aspects of the industry, from new game announcements and patch notes to legal disputes, Twitch beefs, esports, and Henry Cavill. Lots of Henry Cavill.