'Pokemon Go' Maker Niantic Lays Off Over 200 Employees: NBA, Marvel Games Canceled?

'Pokemon Go' maker Niantic lays off over 200 employees as part of its latest reorganization.

Apart from the job cuts, the San Francisco-based game developer cancels its NBA and upcoming Marvel games.

'Pokemon Go' Maker Niantic Lays Off Over 200 Employees

Pokemon Go Niantic

(Photo : OLI SCARFF/AFP via Getty Images)
A picture taken on July 14, 2016 shows an avatar on the screen of a mobile phone as a player uses the Pokemon Go application on their mobile phone as they wait with members of the media opposite the door of 10 Downing Street in central London, as cabinet appointments by new prime minister Theresa May are made on her first full day in office.

As per CNBC, Niantic, the mastermind behind the groundbreaking augmented reality (AR) game 'Pokemon Go,' announced a significant layoff, affecting 230 employees. The job cuts affect employees across all levels and functions, primarily impacting Niantic's Los Angeles studio.

Niantic Chief Executive Officer (CEO) John Hanke says the layoffs are part of their reorganization due to "internet and external factors," such as the macroeconomic slowdown worldwide. The big boss of the 'Pokemon Go' maker highlights that "the mobile market has become crowded" since they launched their AR breakout game. On top of that, he notes, "The mobile advertising landscape [has] made it increasingly hard to launch new mobile games at scale."

According to Tech Crunch, Hanke also disclosed in a Niantic blog post that they hired more employees amid its "revenue surge" during the COVID-19 pandemic. They did so to bump up their growth aggressively. Yet, their new projects never actually delivered the same amount they invested.

And as such, they are letting go of hundreds of its employees as it grapples with various challenges.

Niantic's NBA and Marvel Games Canceled

Pokemon Go Maker Niantic

(Photo : REMKO DE WAAL/ANP/AFP via Getty Images)
TOPSHOT - Gamers play with the Pokemon Go application on their mobile phone, at the Grote Markt in Haarlem, on July 13, 2016.

Aside from the layoffs, Niantic also sheds light on its future gaming titles. Venture Beat reports that the 'Pokemon Go' maker confirmed it is canceling the 'NBA All-World,' currently available on Apple App Store and Google Play Store.

On top of its NBA gaming title, Niantic is also abandoning the development of 'Marvel: World of Heroes.'

With all that in mind, the gaming firm confirmed that its "top priority" is to support its Pokemon AR game. Hanke says their goal is to "keep Pokémon GO healthy and growing as a forever game."

Tech Crunch notes that 'Pokemon Go' amassed $1 billion in in-app purchases since 2020, making it Niantic's apparent cash cow. More recently, From July 2022 to March 2023, Sensor Tower data reports that the game developer made a monthly revenue of $70 million. Meanwhile, as of 2022, Niantic is home to roughly 1,050 employees.