Iwata: Layoffs are not the answer to weakening Nintendo financials

Reducing the staff count may lower overheads but it also comes at a cost, Nintendo president Satoru Iwata has claimed.

If we reduce the number of employees for better short-term financial results employee morale will decrease and I sincerely doubt employees who fear that they may be laid off will be able to develop software titles that could impress people around the world,” the charismatic exec told investors.

I believe we can become profitable with the current business structure in consideration of exchange rate trends and popularisation of our platforms in the future.

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.

Our current policy is to achieve favourable results by continuously cutting unnecessary expenses and increasing business efficiency.”

Nintendo has a rich history of doing things its own way and it may be that some onlookers of a financial ilk will see this as simply another example of Nintendo failing to adopt to a changing market.

However, it’s undoubtedly refreshing to hear one of the very top men in the global games industry openly acknowledging the value of happy staff and the benefit of good morale.