2023-06-30 14:01:30
Published on 30.06.2023
Niantic, the American publisher of the famous “Pokémon Go”, will lay off 230 employees, around a third of its teams, adding to the list of tech companies that have recently made job cuts.
Niantic founding chairman John Hanke said in an internal email to employees – posted online Thursday evening – that the company was going to have to lay off due to a drop in post-pandemic business. According to previous statements by John Hanke, the company had approximately 700 employees.
Over the past year, thousands of people have lost their jobs in the new technology sector, with companies blaming the turnaround on the large hirings that took place during the pandemic to meet the increased demand for entertainment.
Companies in the video game industry such as the American Electronic Arts or the French Ubisoft have done the same, while continuing to post profits.
Founded in 2010, Niantic has struggled to develop a game to match the success of “Pokémon Go”, in which players are guided by their phone in the real world to collect fantastical creatures.
Having become a cultural phenomenon, the game has been downloaded more than a billion times and has generated around $1 billion in revenue each year since its release in 2016, according to specialist firm Sensor Tower.
Niantic has shut down several other projects recently. “Our revenues have returned to pre-Covid levels, and our new gaming and platform projects have failed to deliver benefits commensurate with our investments,” explained John Hanke.
The manager also indicated that the Niantic studio in Los Angeles would be closing, so that the company focuses on “Pokémon Go” as a priority.
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