Nintendo’s Satoru Iwata Speaks Against Laying Off Employees
Nintendo’s Satoru Iwata says that it’s possible for a company to maintain profitability without laying off workers, as game development studios often do after the completion of their projects.
The Nintendo boss said that he believes his company can be profitable through old fashioned efficiency and cost-saving measures without hurting the livelihoods of any of its people.
“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,” Iwata said during a recent shareholder meeting. His answer was a response to a question about whether Nintendo would consider “corporate restructuring” (e.g. laying people off) as a solution to its financial issues.
“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,” said Iwata, who also noted that global exchange rates have had a major influence on the company’s situation.
“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.”