Niantic lays off 68 employees after selling game division to Scopely

The game of musical chairs continues in the world of games — and this time, the focus is on Niantic, a company famous for its tremendous success with Pokémon GO. After announcing in March a drastic reorganization that included selling its gaming division to Scopely, owned by the investment fund of Saudi Arabia, it has now been revealed that 68 employees will be officially laid off from the company.

According to the WARN (Worker Adjustment and Retraining Notification) report published in the state of California, the cuts were formalized on March 20 and are scheduled to be implemented by May 20, 2025. The information was highlighted by the Game Developer portal, which pointed out the exact number of affected employees, something that had not been disclosed until then.

The layoffs follow the announcement made by Niantic CEO, John Hanke, who last month revealed the split of the company into two distinct fronts. On one side is the division acquired by Scopely, which now controls the gaming assets; on the other hand, emerges Niantic Spatial, a new branch that promises to focus on geospatial artificial intelligence solutions, a bet that Hanke considers crucial for the company's future.

“We are committed to delivering what we call 'the promise of geospatial AI',” commented Hanke at the time of the company's split. He had also anticipated that the restructuring would involve personnel cuts, but did not detail the numbers. Now, the impact is beginning to be felt more clearly.

The news comes at a bad time for Niantic, especially with the technology and gaming market experiencing constant waves of layoffs. In 2023 and 2024, we saw companies like Epic Games, Unity, Microsoft, and Sony also significantly reduce their workforce, reflecting an overall adjustment in the sector after years of rapid growth.

On the other hand, Niantic's flagship, Pokémon GO, will continue under new management with Scopely. The company assured fans that there will be no significant changes in the game's structure or monetization — a relief for many, considering Scopely's reputation for heavily relying on microtransactions.

“Pokémon GO will continue to be a vibrant and active experience for players, even under new leadership. The team is committed to maintaining the game's DNA,” Niantic highlighted in a statement to Game Developer.

Niantic's restructuring marks another chapter in the growing consolidation in the gaming industry, where studios seek to diversify their businesses or face tougher financial realities. It remains to be seen whether the new Niantic Spatial will be able to turn enthusiasm for geospatial AI into concrete results — and whether fans of its iconic games will continue with the same confidence after so many changes.