Nintendo’s Iwata Resists Layoffs Despite Troubling Financial Results

Nintendo has seen better days. There's some doubt among analysts about the Wii U's ability to compete with Sony's upcoming PlayStation 4 and Microsoft's Xbox One consoles, and though the game maker found itself back in black earlier this year, the company missed its forecast and posted an operating loss of around $366 million. Nevertheless, Nintendo employees need not panic, at least not yet.

Company president Satoru Iwata made it clear that he has no intention of laying off employees for a short-term gain in numbers. He's very conscious of worker morale and the effect it has on game development.

Satoru Iwata
Image Source: Flickr (Official GDC)

"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 explained at Nintendo's 37rd annual general meeting of shareholders, according to Silicon Era. "I believe we can become profitable with the current business structure in consideration of exchange rate trends and popularization of our platforms in the future."

Iwata isn't afraid to cut costs and restructure Nintendo's business, he just doesn't feel that laying off employees is the right way to go about saving money if there are other means available. In a day and age where layoffs are far too common, Iwata deserves kudos for resisting what's become a popular way of appeasing shareholders in the short-term.