Niantic, the studio behind the global hit Pokémon Go, is undergoing a major transformation following the recent sale of its gaming division to Scopely—a company under the umbrella of Saudi Arabia’s Public Investment Fund. As part of the restructuring process, 68 employees at Niantic’s San Francisco office are being laid off.

The layoffs are set to take place in two waves, scheduled for May 20 and June 15, 2025. The cuts affect a wide range of roles, including top leadership positions such as the Chief Technology Officer, Chief Financial Officer, Vice President, and other senior engineers and legal staff.

This shake-up comes as Niantic pivots away from game development to focus on its new venture: Niantic Spatial. The newly formed company will concentrate on geospatial and augmented reality technologies for industrial and enterprise applications, like warehouse logistics and spatial AI. The transition is backed by $200 million in internal investment from Niantic, along with an additional $50 million from Scopely.

Despite the sale, Pokémon Go will continue under the ownership and management of Scopely. While the core development team remains intact, fans are understandably cautious about what changes the new ownership might bring. Scopely, however, has promised ongoing support and development for the beloved mobile game.

This move is part of a broader trend where Saudi Arabia is increasing its stake in the global gaming industry. Its Public Investment Fund has already invested in several high-profile companies, including Activision Blizzard, Nintendo, and now Scopely.

Niantic’s decision marks a significant turning point for a company once seen as a leader in mobile AR gaming, signaling a shift toward more enterprise-focused tech ambitions.

Source: gamereactor.se