Creators of Pokémon GO begin layoffs after $3.5 billion deal
The developers of Pokémon GO have initiated a new round of layoffs. Niantic has laid off 68 employees immediately following the $3.5 billion deal, under which its gaming division will be transferred to Scopely. The remaining part of the business will be restructured into a new company — Niantic Spatial Inc., focused on an augmented reality technology platform.
According to Niantic CEO John Hanke, the restructuring is necessary to adapt to the new business format. He emphasized that the layoffs are not related to employee performance but are the result of changes in corporate structure. The management promised to support the laid-off workers in finding new jobs.
Previously, in June 2023, Niantic had already conducted major layoffs, affecting 230 employees. Thus, the company has reduced its workforce twice in two years amid strategic shifts.
The business split means that Niantic Spatial will operate as a separate startup — more compact, flexible, and focused on AR technology development. Meanwhile, Scopely will acquire rights to Niantic’s biggest gaming projects, including Pokémon GO, Pikmin Bloom, and Monster Hunter Now.
Despite the continued popularity of Pokémon GO, Niantic has faced challenges in retaining its audience and adapting to changes in the mobile gaming market. The deal and subsequent layoffs reflect the company’s efforts to reorganize for new objectives and maintain competitiveness.
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