The latest tech company to announce layoffs in the wake of over-expansion is Niantic, the developer of mobile game Pokémon Go.
“We will be closing our LA studio, reducing our game platform team and making additional reductions across the company,” announced CEO John Hanke yesterday, adding that the number of layoffs will be around 230.
Why? “We have allowed our expenses to grow faster than revenue,” explained Hanke.
“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… Post Covid, our revenue returned to pre-Covid levels and new projects in games and platform have not delivered revenues commensurate with those investments.”
Hanke said Niantic will continue to invest in its augmented reality platform and mapping tech. That’s the area where the company has intersected with the music industry.