Niantic, an American software development company and Pokemon GO maker, is laying off 230 employees, the company said.
“In the wake of the revenue surge we saw during COVID, we grew our headcount and related expenses in order to pursue growth more aggressively,” Niantic CEO John Hanke wrote in an email to employees on Thursday, which was also posted on the company’s blog.
Hanke said that revenue has returned to pre-pandemic levels, and new projects have not delivered as much revenue as they would have hoped.
“The top priority is to keep Pokemon GO healthy and growing as a forever game,” he wrote.
Pokemon GO is Niantic’s cash cow, earning more than 1 billion U.S. dollars in in-app purchases each year since 2020.
Niantic, a San Francisco-based company, is shutting down NBA All-World, and will also cancel production on a game based on the Marvel franchise, according to the company.
Hanke said the company will narrow its focus for mobile game investments, and will also increase its focus on building mixed-reality devices and AR glasses.