San Francisco, California – A recent $3.85 billion megadeal involving the popular mobile game Pokémon Go has led to the unfortunate outcome of dozens of local workers losing their jobs. Niantic, the San Francisco tech company behind Pokémon Go, announced on March 12 that it would be splitting into two entities as part of the deal.
The games side of Niantic, along with its employees, was acquired by Scopely, a company owned by Saudi Arabia’s Public Investment Fund, while the remaining portion formed a new geospatial technology company called Niantic Spatial. As a result of this restructuring, 68 employees from Niantic’s headquarters are now facing layoffs, with departure dates set for May 20 and June 15.
According to a WARN document filed with state officials, the layoffs will affect various significant roles within the company, including a chief technology officer, a chief financial officer, a vice president, several directors, a general counsel, and approximately a dozen software engineers. In an email to staff published online, Niantic CEO John Hanke explained that the layoffs were necessary in order for Niantic Spatial to operate efficiently as a startup organization.
Despite the unfortunate layoffs, Niantic remains focused on geospatial technology, a sector in which it has significant experience. Its popular games, including Pokémon Go, Pikmin Bloom, and Monster Hunter Now, all rely on augmented reality technology that blends virtual characters with real-world environments captured through users’ mobile cameras.
Niantic Spatial aims to leverage its technology for various applications, such as warehouses, remote collaboration, and enhancing machine understanding of physical spaces. While specifics about the future of Pokémon Go user data under Niantic Spatial remain unclear, the company’s spokesperson declined to comment on potential additional layoffs outside of San Francisco. For those seeking additional information on this story or wishing to share their perspectives on the tech industry, they can contact tech reporter Stephen Council securely at stephen.council@sfgate.com or on Signal at 628-204-5452.