The layoffs come as a response to "a time of economic turmoil," according to CEO John Hanke.
Sensor Tower notes that the AR game is enjoying its most lucrative period four years after launch.
Sensor Tower tells GameDaily that developers of any location-based AR titles should consider a similar strategy.
The collaboration represents a step forward for AR, but there are still significant obstacles to overcome.
Niantic's highly anticipated AR game Harry Potter: Wizards Unite is now live on iOS and Android. While the game is performing well in terms of revenue and downloads, its success lingers behind Pokémon Go due to AR's increasingly mainstream success.
The Pokémon Go developer is renaming Sensible Object to Niantic London, which will work on existing and new Niantic franchises.