Nintendo Won’t Cut Staff To Keep Income Up Short Term

Could be harmful in the long term.

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Nearly every single company in the world when hit with hard times will lay off staff in an attempt to crawl back profits and keep investors happy, but not Nintendo.

Nintendo President Satoru Iwata was asked at a recent investors meeting why the company hasn’t redcued the number of people under its employ, especially with the problems Nintendo has been having in recent years.

“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.”

However Nintendo believes if they reduce the number of employees that have now, they’ll have increased income in the short term but the long term effects could be worse.

“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. 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.”

A noble strategy Mr Iwata.

Source: Siliconera

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Daniel Vuckovic

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