On Monday, November 24, 2025, Thunderful Group published a press release announcing that the company has initiated restructuring in its co-development segment, which will see 50 to 60 people leave Coatsink. The restructuring program was intended to “balance operational expenses with current contracted revenue”.
With the departure of the employees, Thunderful Group hopes to reduce costs by SEK 10 to 12 million (approx. $1,05 million to $1.27 million) in the first half of 2026 and achieve a further SEK 25 to 30 million (approx. $2.64 million to $3.16 million) for the full year 2026.
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“Subsidiary Coatsink, which has been leading Thunderful Group´s co-development segment, has for the last few quarters focused on securing ongoing and new client engagements,” read the press release.
“New contracts have been secured, but with its largest projects wrapping up, and a more challenging co-development market, the business is currently unable to support all existing employees. Approximately 50-60 roles are therefore at risk of redundancy, correlating to around half of the workforce. All proposed redundancies will be subject to a formal collective consultation process with employee representatives in line with UK employment law.”
Coatsink was founded in 2011 and has its headquarters in Sunderland. The studio is considered a market leader in full-service co-development. Coatsink supports several key partners, including Oculus, Raw Fury, Boneloaf, and Facebook. The 50 to 60 people who would leave represent around 50% of the company.
Former employees speak about the Coatsink layoff
Several former employees of Coatsink, including those who have previously left the studio, weighed in on the latest restructuring program initiated by Thunderful Group. VR Game Designer Rob Canciello shared his experience in the 4.5 years he spent there.
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“Hey everyone – some news on my end, Canciello wrote. “My time with Coatsink has officially come to an end. It’s been an absolute pleasure working with my fellow Coatsinkers these last 4.5 years – from Astronimo and Facebook Games, to collaborating with Camoflaj and Meta to bring Batman: Arkham Shadow to life.”
“The knowledge I’ve gained about VR and level design, remote work-life balance, and developing fast and frenzied with professional teams across the globe is immeasurable. I’ll miss everyone I’ve worked with over the years and our shared quirky humor.”
QA specialist Luke Critchley is clearly frustrated with the insecurities in the game industry and expressed willingness to pivot. “The Games Industry Grim Reaper has knocked at Coatsinks door and I’m now at risk of Redundancy 😟,” Critchley wrote. “So the green banner is back up, ideally I’d like to stay in games either still in QA or Production but am willing to pivot at this point.”
Senior community manager Daley Eve Johnson, who previously worked with Coatsink, said the news was “absolutely gutting”. Furthermore, Johnson added, “I got my start in games at Coatsink, and although it’s been a long time since I worked there, I know that team to be some of the best. Massive gut punch for the north-east games industry, Coatsink has long been one of our titans.”
Gemma, who is a community manager at Women In Games, also had a glowing comment for Coatsink. “Coatsink was the first studio that took a chance on me as a CM; giving me my first role in the games industry and my first ever in-game credit. It was a joy to work there.”
Our hearts at GameBaba Universe go out to everyone who was impacted by this restructuring and wish them the best in their future endeavors.
