Niantic lays off 68 people after Pokémon Go $3.5B sale

Niantic, the company behind Pokémon GO, will lay off 68 employees on 20 May 2025, following the sale of its video game business to mobile publisher Scopely for $3.5 billion.

The news comes after the announcement of the sale of Pokémon GO, Pikmin Bloom, and Monster Hunter Now back in March. Niantic CEO John Hanke announced company-wide changes, saying the business would be reshaped into a “startup organisation” focused on their geospatial artificial intelligence projects.

A new venture, Niantic Spatial Inc., will lead its future work in AI-powered spatial tools. Led by Hanke, the spin-off company will continue to support smaller AR titles like Ingress Prime and Peridot. Niantic Spatial intends to develop technology to navigate and understand the real world using advanced mapping tools and spatial data. The business is being funded with $250 million, including $200 million from Niantic and $50 million from Scopely.

Scopely says it will allow Niantic’s development teams to continue working independently, with leaders Kei Kawai and Ed Wu staying on board. Wu described the deal as “a positive step” and assured players the game will remain active and supported, with over 100 million still engaged since last year.

Scopely is owned by Savvy Games Group, a Saudi government-backed company. Savvy purchased Scopely for $4.9 billion in 2023 and has invested in other major game developers like EA and Nintendo. However, Savvy’s links to Saudi Arabia’s Public Investment Fund draws criticism, with concerns over human rights issues under Crown Prince Mohammad bin Salman’s leadership.

An acquisition of Niantic doesn’t come as a huge surprise, but people losing their jobs is always bad news. Pokémon GO was a global phenomenon when it launched in 2016, bringing in massive profits and player numbers. But its popularity declined after the initial hype. Follow-up AR titles based on big-name franchises like Harry Potter, Pikmin, and Monster Hunter have seen only limited success.

The Niantic–Scopely deal is expected to be finalised later in 2025, pending regulatory approval. We hope the 68 employees losing their hardworking jobs can find new employment swiftly with the support of their employers.