Niantic has laid off about 230 workers to "climate the present challenges available in the market," leading to a shutdown of not less than two video games.
Pokemon GO sport developer Niantic has introduced that it’s shedding round 230 workers, sunsetting NBA All-World and stopping manufacturing on Marvel: World of Heroes.
Niantic CEO John Hanke shared an e-mail to workers on Thursday, the corporate mentioned in a weblog submit.
“I’ve some information to share with you about steps we’re taking to set Niantic up for the long run. They imply some tough modifications for our organisation, however I consider they’re necessary if we’re to climate the present challenges available in the market and make the most of the long run alternative in entrance of us,” Hanke mentioned.
“I’ve made the choice to slender our focus for cell sport investments, concentrating on first-party video games that almost all strongly embody our core values of location and native social communities.”
Additionally, the corporate now needs to extend its concentrate on constructing for the rising class of blended actuality (MR) gadgets and future augmented actuality (AR) glasses. In consequence, Niantic might be closing its Los Angeles studio, decreasing the sport platform staff and making further reductions throughout the corporate. Furthermore, it is going to be sunsetting NBA All-World and stopping manufacturing on Marvel: World of Heroes.
“Within the wake of the income surge we noticed throughout Covid, we grew our headcount and associated bills to be able to pursue development extra aggressively, increasing present sport groups, our AR platform work, new sport tasks and roles that assist our merchandise and our workers,” Hanke defined.
Nonetheless, post-Covid, the income returned to pre-Covid ranges and new tasks in video games and platforms haven’t delivered revenues commensurate with these investments, he added.
Hanke described the change as “painful” and mentioned that this step “is within the curiosity of adjusting to new situations and evolving the corporate so it might succeed.”
In June final yr, the Pokemon GO sport developer had laid off eight % of its workforce, which was mentioned to be round 85-90 jobs. In the course of the layoff, the corporate additionally cancelled 4 tasks, together with the ‘Transformers: Heavy Steel’ sport.
— IANS
