Niantic, the company behind Pokemon Go, announced an 8% reduction in its workforce and the termination of four video game projects. The firm would be “facing a period of economic turbulence”according to his boss John Hanke.
Video game publisher Niantic is currently going through a period of “economic turbulence”. This was revealed by John Hanke, CEO of the American firm, in an email sent to employees of the company and that Bloomberg obtained. John Hanke reveals the need to “streamline operations to best position the business to weather any economic storms that may arise”. Between 85 and 90 jobs should be cut, or 8% of the company’s workforce.
Niantic, which achieved global success with Pokemon Go, is also preparing to cancel four video game titles. Abandoned projects include Transformers: Heavy Metala game made in partnership with Hasbro and Tomy, announced at E3 2021. Hamletborn of a partnership between Niantic and Punchdrunk (immersive theater troupe), will also never see the light of day.
The company specializing in augmented reality games, based on geolocation, has so far never managed to repeat the success of Pokemon Go. It is not, however, for lack of having tried, with Harry Potter: Wizards Unite in particular, but this title never found its audience and the Ministry of Magic had to close its doors on January 31, 2022.
“We recently decided to stop production on some projects and reduce our workforce [afin] to focus on our key priorities”explained Jonny Thaw, spokesperson for the firm, to our colleagues at The Verge. Among the company’s key priorities: Pokemon Goof course, but also NBA All Worldan augmented reality game announced on June 28.