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?

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Bigpappy2502d 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.

lilbroRx2501d ago (Edited 2501d 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.

Erimgard2501d 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.

Chrischi19882501d 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.

ozstar2501d 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.

wonderfulmonkeyman2501d 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.

Geekman2501d ago

Didn't the dude take paycutts to prevent layoffs?

I'm not completely against a new CEO, but shut up regardless.

WeAreLegion2501d ago

He did take a paycut. It's a popular option in Japan. It has happened at Nintendo many times. Sony, too.

lilbroRx2501d 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.

Spotie2501d 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.

randomass1712501d ago

@Spotie Bitter much? It goes both ways and it doesn't lilbroRx a "cyrbaby" for pointing it out. Calm down.

WeAreLegion2501d 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.

randomass1712501d 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.

+ Show (2) more repliesLast reply 2501d ago
Geekman2501d 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.

Spooney3232501d ago

Sometimes the tree needs to be pruned before it can bear fruit.

Theyellowflash302501d 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.

Chrischi19882501d ago

Why should there be no excuse? Better then running the whole company against the wall and then everybody loses not only 130 people.

Theyellowflash302501d 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.

randomass1712501d 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.

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