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While Pokemon GO may have seen its profits normalize over the last month, it appears developer Niantic is still struggling quite a bit.

Kotaku has received an internal email from Niantic that points to tough times ahead for the Pokemon GO developer. The email reveals that the flooded mobile market and the pandemic has led to lower profits and a more volatile industry, and unfortunately cuts need to be made.

Niantic will be closing its Los Angeles studio, laying off 230 employees, shutting down some games, and halting in-house development. That said, it appears it’s business as usual for Pokemon GO, which will continue to be the studio’s flagship project.

[Kotaku]

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