Niantic Spatial Announces Layoffs Following Scopely Acquisition: Impact on Remaining Employees

In a significant move within the mobile gaming industry, Niantic, best known for its pioneering augmented reality games like Pokémon GO on platforms such as the Nintendo Switch and smartphones, has officially undergone a major transition.

In March 2024, the company confirmed the sale of its gaming division to Scopely, a mobile publisher with substantial Saudi ownership, in a landmark deal valued at $3.5 billion.

This sale positioned Scopely as a major force in the mobile gaming space and signaled a new chapter for Niantic, which now operates under the name Niantic Spatial. In the weeks following the acquisition, Niantic Spatial has announced a round of layoffs impacting at least 68 of its employees.

While the news is disappointing for those affected, the company has clarified that these changes will not be immediate.

Instead, the impacted employees will remain employed with Niantic Spatial until May 20, 2024, allowing for a transition period as the organization restructures. Addressing the workforce in an internal communication, Niantic CEO John Hanke outlined the reasons behind the layoffs.

He explained that in order to "operate as a startup organization, focused on the road ahead," some roles would no longer align with the company’s revised strategy.

Hanke’s statement noted that "these decisions are never easy; they in no way reflect the individuals’ performance, and we understand their impact on people’s lives." Demonstrating a commitment to those affected, he expressed the company’s appreciation for the contributions of all departing employees and assured support as they move toward new opportunities. Established in 2010 as an internal startup within Google, Niantic became a leader in location-based gaming and mobile augmented reality experiences.

Its greatest success, Pokémon GO, launched in 2016, quickly became a cultural phenomenon with over a billion downloads and earned numerous accolades for innovation in gameplay and use of real-world data.

The company’s further projects have included mobile titles such as Ingress and Harry Potter: Wizards Unite, as well as ongoing technological investments in AR infrastructure and mapping. Scopely’s acquisition of Niantic’s gaming division represents one of the most significant industry deals of 2024, reflecting the value and importance of AR expertise and a strong portfolio within the mobile market.

As Niantic Spatial moves forward, the company’s leadership asserts a renewed focus on innovation and agility, even as it undergoes difficult restructuring decisions. Niantic’s evolution — from a groundbreaking developer of Nintendo mobile games to a key acquisition in the mobile gaming industry — underscores rapid changes in game development, publishing, and the global market.

The coming months will reveal how Niantic Spatial’s new direction impacts both its team and its passionate global community.

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