It's the classic big business solution to having a bad few years - "restructuring" the company and removing portions of the staff. A neat way to cut costs immediately.
Nintendo don't do things the normal way though, and refusing to fire staff is unusual. Satoru Iwata has explained their stance, citing morale as more important than short term cost reductions...
In the American big business world, the shareholders are king, and it is often seen as necessary to make a big deal about how you're going to make a larger profit; including by reducing costs. This attitude to staff is often seen as heartless, and doesn't even always work.
Iwata said that employees being scared for their jobs hardly makes them willing or able to create the sort of software that Nintendo are renowned for. Although you make a short term saving, the lack of morale means your long term prospects are damaged, with worse software being produced.
"We should of course cut unnecessary costs and pursue efficient business operations. I also know that some employers publicize their restructuring plan to improve their financial performance by letting a number of their employees go, but at Nintendo, employees make valuable contributions in their respective fields, so I believe that laying off a group of employees will not help to strengthen Nintendo’s business in the long run."
This is yet another example of how differently Nintendo run their business compared to the other console makers, as well as others in the AAA games industry, who regularly cast off employees.
What do you think, should more companies try and focus on their employees and keep them happy? Or is it a good thing when companies cast off devs; leading to creations like Titanfall? Tell us below!