Nintendo Explain Lack Of Staff Layoffs

Written by Andrew Moynihan on Mon, Jul 8, 2013 12:28 PM
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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!

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12:53 Jul-08-2013

This is one I cant tell you how many time I have been "down sized" BrightHouse Networks (subisdary of Time Warner Cable), IBM, Dell, HP, and yes Apple. Ive had a great career to say the least and have been very privileged. But Most big corporations dont give 2 ****s about the employees they get what they want from you and Done or Hire you for a contract to plan in advance. Nintendo is 1 of only 2 places ive seen take a hit for their employees. The 2nd is the place I work Eli Lilly. If you carry a real Lilly badge and your not a contractor (yes you hp eat it) you absolutely carry the power to m

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12:53 Jul-08-2013

ake a difference. I applaud Nintendo and Eli Lilly both for caring about their employees. Now if we can sort out Weyland Corp the world might have a chance ;)

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18:54 Jul-08-2013

Good on them like you said but Weyland Corp? Isn't that not the Company from Aliens/Predators? Anyways with most companies it doesn't matter what sort of work you are into don't give a crap abotu anyoen but their higher ups.

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00:42 Jul-09-2013

yea Weyland Corp is from Aliens. Love my Aliens

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04:02 Jul-09-2013

I was always more of a predators guy myself lol but god I loved that Prometheus movie that was amazing I didn't even know what it was about until I saw Weyland Corp. in it.

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