Islanders studio Coatsink has announced a round of layoffs targeting around half of the workforce, which parent company Thunderful hopes will result in cost reductions of around $3 million for the year.
As revealed on the Thunderful website, about 50 to 60 Coatsink employees will be losing their jobs. Thunderful says Coatsink is "currently unable to support all existing employees", and that the layoffs are necessary to navigate a "more challenging co-development market".
Despite the hefty layoffs, Coatsink isn't closing down. Thunderful says the studio is still "a market leader in full-service co-development", and that it remains "well-positioned to deliver on all existing and upcoming top-tier projects".
These Coatsink layoffs are part of what appears to be a downward trend for parent company Thunderful; over the last couple of years, Thunderful has laid off a large number of its employees and closed down studios as a result of declining financial performance.
Thunderful's struggles did not, however, prevent Atari from purchasing a majority stake in the company in July, although that, in turn, hasn't stopped Thunderful and its subsidiaries seemingly continuing to hemorrhage employees.
As for Coatsink itself, if you're not familiar with its name, you...
