Mobile game revenue topped out at $41.2 billion, while game downloads slightly increased by 0.4%.
The move comes roughly a year after Nordisk acquired a 30% stake in the developer.
The studio is set to double its workforce and has multiple VR and AR projects in development.
The search engine giant also pledged to make the Google Play Store a more open platform and provide more ways for consumers and developers to conduct transactions outside the app.
The layoffs come as a response to "a time of economic turmoil," according to CEO John Hanke.
The acquisition was announced just one day after the decision to cease Spellbreak development was made public.
An almost decade-long dispute continues.
The parties reached a consent judgment before the case could go to trial.
"A completely new game that no one has ever experienced or seen before."