Steamworld Dig developer layoffs 80-100 staff and cancels some games in development to ensure 'long term sustainability and resilience.

Thunderful, a studio formed by the merger of Steamworld developer Image & Form with Fe developer Zoink in 2018, has announced a strategic restructuring program that will see a greater focus on third-party publishers, a reduction in internal development, as well as the industry's preferred tool to weather "tough economic headwinds", mass layoffs.

Thunderful said that the shift from development to publishing will reduce costs, and "allow greater flexibility, enabling quicker, diverse game releases." It also means that Thunderful's entire development team will no longer be needed. This will result in the loss of 80-100 jobs.

Thunderful Group CEO Martin Walfisz stated in the restructuring announcement that it was regrettable to announce the second restructuring in less than a calendar year. However, we see no other options to ensure the Group’s long-term resilience and sustainability. "The strategic decision to publish games from external partners allows for us to reduce fixed cost, increase flexibility, as well as better control our cashflow. It is with regret that we have to part ways with our talented and dedicated staff.

RPS noted that the first round Walfisz referred to in his article occurred in January this year. This saw 20% of Walfisz's employees let go due to "over-investments in the last few decades."

It's been a common theme in the games industry for the past two years: big spending and hiring at the height of the Covid-19 epidemic, and then deep cutbacks when the concern about the disease subsided, and people started to go outside again.