California-based Niantic is laying off 68 employees shortly after selling its gaming division to Saudi mobile publisher Scopely for $3.5 billion. According to the company, the deal allows it to focus on developing its geospatial AI business and create a new company called Niantic Spatial Inc. Game Developer reports.
Niantic's gaming division has created popular mobile games such as Pokemon Go, Monster Hunter Now, and Pikmin Bloom.
Niantic CEO John Hanke said the cuts would help the company focus on key goals and operate more efficiently, like a startup.
"After a lot of consideration, it became clear that some roles would not be required given our new focus. This week, we are sharing this news with the individuals whose roles are impacted," Hanke told employees.
The company's new focus will be on creating a next-generation map that unlocks the potential of "spatial intelligence." The company's new project will "enable devices and machines to understand and interact with the physical world."