Niantic, the maker of Pokémon GO, laid off 230 employees. The second round of layoffs within a year comes as the company faces challenges with new projects and revenue generation. Despite the success of Pokémon GO, recent game releases have not lived up to expectations reducing expected in-app purchase revenue. - Niantic canceled four projects, including a Transformers game, during the previous round of layoffs, and additional game cancellations are expected again.
- The CEO, John Hanke, attributed the layoffs in part both to overhiring during the pandemic and underwhelming revenue from newly expected projects.
- The move comes at a time when the company plans to further develop and enhance its successful projects to ensure continued growth and success as Pokémon GO remains a major revenue source, generating over $1B annually.
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