Niantic, the company behind the popular game “Pokémon Go,” is laying off around 230 employees as it focuses on augmented-reality (AR) technology and cancels some games.
The cuts will affect 25 percent of its workforce.
In an email to staff, CEO John Hanke said these measures were necessary to navigate the current challenges in the market and capitalize on future opportunities.
Read More: Ziprecruiter cuts 270 jobs as CEO takes 30 percent pay cut
The company will be discontinuing its game “NBA All-World” and halting production of “Marvel: World of Heroes.”
Hanke attributed the decision to the need for aligning expenses with revenue, as its expenses were growing faster than its income.
Despite the return of their revenue to pre-pandemic levels, new projects in both games and platforms have not generated the expected financial results.
Niantic’s move reflects a broader trend in the tech industry, where companies are downsizing in response to economic uncertainties and to better align with their growth projections.
Need Career Advice? Get employment skills advice at all levels of your career
Although “Pokémon Go” gained immense popularity upon its release in 2016, Niantic has struggled to replicate that success with subsequent releases.
Last year, the company laid off around 80 employees and halted the development of a Harry Potter game that had launched in 2019.
In addition to its gaming ventures, Niantic is actively engaged in the development of augmented-reality technology.
The company aims to create AR experiences not only through games but also by working on technology for AR headsets.
Niantic’s Lightship platform enables other software companies to build augmented-reality experiences, positioning Niantic as a key player in the emerging AR market.
