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Nintendo won’t cut staff to satisfy shareholders in the short term

Monday, 8th July 2013 02:57 GMT By Brenna Hillier

Nintendo president Satoru Iwata has staunchly refused to let staff go in order to shore up the Japanese company’s teetering financial peformance.

During a Q&A with investors, Iwata was challenged to justify why Nintendo hadn’t undergone “corporate restructuring” – usually a euphemism for lay-offs – in response to operating losses during its two most recent fiscal periods.

Iwata said the losses Nintendo made could be ascribed to multiple causes including fluctuating foreign currency exchange rates, resulting in less return from the same sales figures, but also acknowledged that the company is paying more employees than in previous financial years.

“The manpower required for increasingly complex and advanced product development has totally changed from that of the past. Hence, the number of employees has increased and higher costs have been incurred,” he said.

“Regarding why we have not reduced the number of the personnel, it is true that our business has its ups and downs every few years, and of course, our ideal situation is to make a profit even in the low periods, return these profits to investors and maintain a high share price. I believe we should continue working toward this ideal.

“If we reduce the number of employees for better short-term financial results, however, 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.”

Iwata said he believes Nintendo can be profitable with its current business structure, although he said it will indeed enact appropriate certain cost-saving measures.

“I 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,” he said.

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

Thanks, Vooks.

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3 Comments

  1. spazman

    when you can’t see the forest for the trees you create a kitsch console. This xmas will decide Iwata’s fate, because really, that’s the job he’s most concerned about.

    #1 1 year ago
  2. ps3fanboy

    “If we reduce the number of employees for better short-term financial results, however, 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.”

    this is why i like nintendo, they get it. you dont tread your employee like expendable cattle. i gladly support this, because i know i will get quality product as a gamer. but with that said i don’t claim nintendo to be perfect, they have done their share of bad ideas. but when nintendo do good they do it way better than anyone else. i like nintendo as a company, its like nolan bushnell’s 1970 hippy atari in the 2013.

    #2 1 year ago
  3. The_Red

    To be fair, they can’t afford to lose more work force. The move to HD took them by surprise and they already are behind the schedule for most games. They NEED more men / women, not less.

    #3 1 year ago

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