Pokemon Go maker Niantic Inc. is closing its Los Angeles game studio and canceling NBA and Marvel titles in a restructuring aimed at stabilizing the company’s finances.
“We have allowed our expenses to grow faster than revenue,” Chief Executive Officer John Hanke wrote in an email to employees. “New projects in games and platform have not delivered revenues commensurate with those investments.”
The closely held San Francisco-based metaverse darling said it will shut down its NBA All-World game and halt work on the upcoming Marvel World of Heroes.
About 230 employees will lose their jobs, Hanke said. He added that the restructuring will bring expenses and revenue “back in line while preserving our core assets.”
Last year, Niantic canceled four projects and cut 8% of its staff. In May, Bloomberg reported that the company had been struggling amid metaverse skepticism.
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