Satoru Iwata Refuses to Layoff Nintendo Employees

[Steven Bogos]

Satoru Iwata Refuses to Layoff Nintendo Employees

Nintendo's top dog says that layoffs may solve short-term financial woes, but are destructive to employee morale.

Nintendo isn't doing so well this generation [http://www.escapistmagazine.com/news/view/121778-Wii-U-Sales-Forecast-Cut]. Despite this, president Satoru Iwata refuses to layoff staff members, stating that while it may solve short-term financial woes, the destructive effect on employee morale isn't worth it. "If we reduce the number of employees for better short-term financial results, employee morale will decrease," he told investors in a Q and A session.

Further justifying his reasoning, Iwata says "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." Sounds like a pretty solid boss who actually has his employee's bests interests at heart, if he refuses to give them the ax despite the company's struggling financials.

"I also know that some employers publicize their restructuring plan to improve their financial performance by letting a number of their employees go," Iwata explained, "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."

Iwata points to the rapidly strengthening yen versus the US dollar as another reason for the company's financial situation. He adds that that today's games require more manpower to produce than those in the past, mirroring statements made earlier this week by Mario creator Shigeru Miyamoto [http://www.escapistmagazine.com/news/view/125716-Nintendo-Underestimated-the-Cost-of-Going-HD]

Source: Siliconera [http://www.siliconera.com/2013/07/05/nintendo-not-interested-in-lay-offs-to-improve-profits/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+siliconera%2FMkOc+%28Siliconera%29]

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[Dark Knifer]

I hope they have a plan in store but it is nice to see employees being valued at least in one place.

 

[Grabehn]

And another piece of news showing that they actually care. A pretty sad tone in this one but it's kinda refreshing to hear from a company that's not yelling "give us money" while they fire people and close studios... Fuck have I been pessimistic this week...

 

[MrMixelPixel]

Good old Nintendo, living in the happy land of bubble gum and unicorns. They always manage to put a smile on my face.

 

[Kaeniar]

Damn it Nintendo! Alright, alright, I AM gonna buy the 3DS XL! Are you happy NOW?!

 

[Abomination]

It seems the Japanese are one of the few cultures that still embraces honour.

They also possess the ability to consider long term effects of decisions.

 

[KeyMaster45]

And that is why, despite all my pissing and moaning over their choices of hardware, I will always remain a die-hard fan of Nintendo. I can never hate them, but I have been very dissapointed in them since the Wii.

 

[Arawn]

I must say that's a rather noble attitude. Most companies would indeed fire off the workers and then give themselves a pay bonus for a job well done. The reverse is also more likely as well. What about the opposite? I doubt they'd consider reducing their own pay (the bosses) I'm sure they do have something planned. That much is a given since they see the quick fix won't cut it. Looking beyond the short term is a good idea, but it's a bumpy road. Usually it means some rough sections, but when you reach the goal it's all worth it.

 

[Dragonbums]

Makes sense.

Unlike Sony and Microsoft they rely heavily upon their in house studios to make games for their consoles. Laying off staff within their studio would be catastrophic.
And this is a very long term kind of thinking. Something that the likes of EA have all but forgotten, and look where they are now financially and PR wise.

Also having the same amount of staff now is starting to pay off.

The 3DS is coming out with game after game.
An unsuspecting 3DS owner with money to spare will find themselves with bare pockets this coming holiday season, and Nintendo will be more then happy with the load of cash they get when Pokemon X and Y destroys sales in all regions.

 

[Alar]

Love these guys. Personally, I would rather take a pay cut or loss of yearly bonuses than lose a job, especially if it was somewhere I enjoyed working.

 

[Grabehn]

Love these guys. Personally, I would rather take a pay cut or loss of yearly bonuses than lose a job, especially if it was somewhere I enjoyed working.

This just reminded me of something. Didn't Iwata chose to have his salary cut in half over the loses of... the 3DS (I think), a few years ago?

 

[Combustion Kevin]

anyone else imagining Iwata bawling his eyes out going: "no, I love you guys! I'll never abandon you!", hugging them at some serious staff meeting where the head of human resources goes "uhm... okay...".

 

[Terramax]

In Japan, it is seriously scorned upon to lay off members of staff. In a country deeply conscious of pride, laying off members is pretty much like holding up a sign to the entire country saying 'we're a terrible company! We have no pride!', regardless of the reasons behind it.

If memory serves me correctly, some years ago, during the original Xbox's run, Microsoft laid off a huge number of staff in the Japanese gaming sector. Consequently, of all the bad decisions MS made during those first years, this one proved to be the most fatal, PR wise.

Nintendo are as Japanese as companies get. I'm sure, if it didn't damage their reputation in their home country, they'd happily lay off staff.

 

[Adam Jensen_v1legacy]

Love these guys. Personally, I would rather take a pay cut or loss of yearly bonuses than lose a job, especially if it was somewhere I enjoyed working.

This just reminded me of something. Didn't Iwata chose to have his salary cut in half over the loses of... the 3DS (I think), a few years ago?

The salary and the bonuses. He's a real stand-up guy.

 

[weirdee]

I must say that's a rather noble attitude. Most companies would indeed fire off the workers and then give themselves a pay bonus for a job well done. The reverse is also more likely as well. What about the opposite? I doubt they'd consider reducing their own pay (the bosses) I'm sure they do have something planned. That much is a given since they see the quick fix won't cut it. Looking beyond the short term is a good idea, but it's a bumpy road. Usually it means some rough sections, but when you reach the goal it's all worth it.

they actually have taken pay cuts earlier

http://www.escapistmagazine.com/news/view/111963-Nintendo-CEO-Takes-50-Pay-Cut

 

[Thaluikhain]

Not saying that he's a bad bloke or anything, but recognising that firing lots of people would be bad for morale and thus counter-productive doesn't necessarily mean you are noble or care about your employers, it's good business sense.

 

[Saltyk]

Just have to trust that they know what they are doing. There is some logic in not firing any employees, however, there is also logic is reducing redundancy. Generally, hard financial times can help a company realize that they have people whose jobs are pointless or inefficient.

So, I see this is both a good and bad thing. Nintendo is doing something that is decent. Still, this could also have negative long term effects if they simply ignore the fat and don't trim it.

 

[GoaThief]

Their marketing and mindshare bods need a good freshen up however. Games like Wonderful 101 are due out in a month or so and the vast majority of people have absolutely no idea just what the fuck it is yet.

 

[Vivi22]

I must say that's a rather noble attitude. Most companies would indeed fire off the workers and then give themselves a pay bonus for a job well done. The reverse is also more likely as well. What about the opposite? I doubt they'd consider reducing their own pay (the bosses) I'm sure they do have something planned. That much is a given since they see the quick fix won't cut it. Looking beyond the short term is a good idea, but it's a bumpy road. Usually it means some rough sections, but when you reach the goal it's all worth it.

they actually have taken pay cuts earlier

http://www.escapistmagazine.com/news/view/111963-Nintendo-CEO-Takes-50-Pay-Cut

Indeed. We can say what we want about Nintendo and how they really seem to have misjudged the market with the Wii U, but when it comes to managing the business side of things, Iwata seems like a class act.

 

[Vivi22]

Not saying that he's a bad bloke or anything, but recognising that firing lots of people would be bad for morale and thus counter-productive doesn't necessarily mean you are noble or care about your employers, it's good business sense.

Good business sense that no other major game company seems to understand. Most other game execs care more about their short term performance and their own salary than recognizing the value of employees. This guy, on the other hand, is refusing to fire anyone and even slashed his own salary when the 3DS was struggling after he took full responsibility for it.