Hanke’s letter acknowledged the mistakes made by the leadership team, attributing the downsizing to the studio’s expenses outpacing its revenue growth. He noted that after experiencing a surge in revenue during the COVID-19 pandemic, Niantic expanded its headcount and investments in pursuit of aggressive growth. However, post-pandemic, the company’s revenue returned to pre-COVID levels, and new projects in games and platform development did not generate the expected revenue. The CEO expects the layoffs to realign expenses with revenue while safeguarding the studio’s most valuable asset.
Regarding Pokémon Go, Hanke emphasized its status as a top priority, aiming to maintain its growth as a long-term “forever game.” While the Pokémon Go team underwent some adjustments, Niantic remains committed to investing in the product and its dedicated team. Pokémon Go became a global sensation upon its release in 2016, and its popularity resurged during pandemic lockdowns as players sought an opportunity for adventure beyond their homes. Last year, Niantic launched a social app for Pokémon Go, enabling players to organize and communicate with one another.
