Niantic hit with layoffs following $3.5 billion Pokémon Go sale

Niantic, best known as the original developer behind Pokémon Go, is laying off 68 employees following the sale of its mobile gaming business to Scopely last month.
The details:
Niantic announced last month that Saudi-backed mobile gaming giant Scopely would be acquiring Pokémon Go, Monster Hunter Now, and Pikmin Bloom for $3.5 billion, including their respective development teams. The studio then announced that it would launch a new spin-off, Niantic Spatial, to focus on geospatial AI.
However, as spotted by Game Developer, Niantic has now issued a legally required Worker Adjustment and Retraining Notification (WARN), confirming that it will lay off 68 employees on May 20 as part of an internal restructuring. It is unclear which areas of the business have been impacted, and the company has declined to comment on the cuts.
Niantic CEO John Hanke warned that layoffs were likely following the sale, later informing affected employees via an internal email on March 20 that the cuts would allow the company to operate more like a "startup organization." "After a lot of consideration, it became clear that some roles would not be required given our new focus. This week, we are sharing this news with the individuals whose roles are impacted," the CEO wrote. "These decisions are never easy; they in no way reflect the individuals’ performance, and we understand their impact on people’s lives."
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