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Submitted by Erimgard 608d ago | opinion piece

Nintendo Layoffs Show Iwata’s Lack of Faith in the ‘Larger-Scale Business’ Model Working in Europe

GenGAME writes: Nintendo President and CEO Satoru Iwata has always stood firm against downsizing, stating that he would not downsize in July of 2013 and again in November of 2013. Just over half a year later, Nintendo is axing 130 jobs in Europe. What changed? (3DS, Nintendo, Satoru Iwata, Wii U)

Bigpappy  +   609d ago
It is not about faith. It is about accepting the situation for what it is and making decisions that while help you live to fight another day.
lilbroRx  +   608d ago
There is a major overlooked point in this news that the writers seem to intentionally have pushed to the side. These lay offs are only in Europe(Germany to be specific) which is ran by Satoru Shibata, not Iwata directly.

Iwata is global CEO, but something like hiring and firing people in other countries is more than likely entirely decided upon by the executives in that country who have a bigger grasp of the situations in those territories.

Satoru Iwata more than likely had nothing directly to do with these lays offs, but since he is the biggest and favorite target of the gaming media right now, of course all negativity and presumptions will be directed at him like they were at Miyamoto before Iwata became so popular years back.

Also they are not simply axing the jobs, as in downsizing like this article is trying to portray. They are relocating to the new studios they made which will likely be hiring new people.

Of course, truthful and accurate headlines don't generate as much click revenue. This is just a bad attempt at fabricating a Nintendo doom article from neutral news.
#1.1 (Edited 608d ago ) | Agree(6) | Disagree(3) | Report | Reply
Erimgard  +   608d ago
Satoru Iwata, as CEO, approves all major decisions like this. Nintendo's business structure is very Japan-centric. No one makes a major decision without Iwata's seal of approval.
Chrischi1988  +   608d ago
Major changes... 130 jobs is not as major as people might think. Many companies fire over 5000 people in one act, that is a major change.
ozstar  +   608d ago
@Chrischi1988, Nintendos total workforce is barely over 5000.

In terms of Europe, and i think in terms of Ubisoft (seemingly) dropping support, Iwata may've just decided to try and save face before his Fin Meeting. That makes some sense.
wonderfulmonkeyman  +   608d ago
My bet is on a shareholder or investor or three saying that they expected this of him, and Iwata caving under the threat of it.
But then again, I admit I know nothing of the particulars, so that's just my guess.
Geekman  +   608d ago
Didn't the dude take paycutts to prevent layoffs?

I'm not completely against a new CEO, but shut up regardless.
WeAreLegion  +   608d ago
He did take a paycut. It's a popular option in Japan. It has happened at Nintendo many times. Sony, too.
lilbroRx  +   608d ago
No one asked about Sony. I find it strange how Sony always appears in Nintendo centric news wherever something that sounds even remotely favorable about Nintendo or their business practices is said.

What Sony has to do with a layoffs at a Nintendo run studio in Germany in Europe is beyond me.
Spotie  +   608d ago
Geez, it's fine if you have a raging boner for Nintendo, but keep that thing in check. He referenced Sony as another Japanese company- and another gaming company, too- that has also done the executive pay cut thing. No need for you to get all up in arms.

Besides, I'd be willing to bet money that you, yourself, have brought up Nintendo in unrelated articles. At least three mention of Sony here is relevant.

Damn crybaby.
randomass171  +   608d ago
@Spotie Bitter much? It goes both ways and it doesn't lilbroRx a "cyrbaby" for pointing it out. Calm down.
WeAreLegion  +   608d ago
Thanks for the support on that one, Spotie and randomass171! I appreciate it. :)

@lilbroRx - They're right. I was just using Sony as another example of a Japanese company who has done this.
randomass171  +   608d ago
For whatever it's worth Legion, I actually do agree with your assessment. I just think that lilbro's criticism was a fair one since I always see Nintendo getting more flack than any other company on this site. Except maybe Microsoft on certain posts.
Geekman  +   608d ago
libroRX, I hate to tell you this. (No, I REALLY do. I love Sony.) But Sony is in worse state than Nintendo. Nothing of theirs but the PS4 sells well.
Spooney323  +   608d ago
Sometimes the tree needs to be pruned before it can bear fruit.
Theyellowflash30  +   608d ago
There is no excuse for layoffs. Its not cool, but its pretty obvious Europe is Nintendo's weakest market.

They need to streamline things in order to have a successful FY 2014.

But like I said, laying people off really sucks.
Chrischi1988  +   608d ago
Why should there be no excuse? Better then running the whole company against the wall and then everybody loses not only 130 people.
Theyellowflash30  +   608d ago
I hate to see people lose their jobs that's all. If Nintendo planned things better with the Wii U, they might not have this problem.

But their were many things they couldn't control, like EA's betrayal.

Overall, I understand that this had to be done, similar to Sony cutting jobs. But it still sucks.
randomass171  +   608d ago
Losing around 130 workers certainly is terrible, but for all we know it may not have even been avoidable. I don't fault Sony for laying off workers when they were down, so I won't fault Nintendo. I'm sure they had their reasons and I hope they find a way to keep it from happening again.
11eleven11  +   608d ago
I feel sorry for jobs lost and hope the people get through off course, but I kinda like to think that the team responsable for the WiiU marketing in EU is gone.
a_adji  +   608d ago
Errrr correct me if I'm wrong but if they are relocating the business and employees don't or can't travel to the new location, then what are they to do?
Erimgard  +   608d ago
It's not a literal relocation. They completely shut their main building down, and made another building they already owned the new main headquarters.
fatneal  +   608d ago
actually months ago it was reported nintendo bought new space to open new this one may have be absorbed by another but theres a couple news ones opening up...seriously the 'nintendo is doomed' articles are lame now...get new jokes
thehobbyist  +   608d ago
Nintendo restructuring their European branch shows their lack of faith in business model apparently.
Erimgard  +   608d ago
In Europe, yes. Iwata said the only cause for layoffs is if there is "no possibility" of becoming a larger-scale business again. So restructuring in Europe indicates he that he believes the Europe branch has no possibility of becoming a larger scale business again.
N4g_null  +   608d ago
There is a severe lack of information in these articles. Oh well it will be forgotten soon enough. It couldn't possibly be because of the other buisness model they are developing.
RPGrinder  +   608d ago
This article is absolute nonsense. Lack of information is kind.
linkenski  +   608d ago
Iwata doesn't just have a lack of faith in the larger scale business model. He has lack of faith in the "Rarger-scale" business model (Laughs)

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