library not found for -lPods

I separated the app and the test targets in the Podfile by using

target :App do
    …
end

target :AppTests do
    …
end

This resulted in two new products libPods-App.a and libPods-AppTests.a, respectively and they made the previous product libPods.a obsolete. I had to remove this product from the Link Binary With Libraries Section of the Build Phases configuration of both targets.

Are you opening the workspace (that was generated by CocoaPods) instead of the xcodeproj?