Nintendo president Satoru Iwata recently told investors that reducing staff may be a good way to lower overhead costs in the short term, but it also comes at the expense of developer morale and productivity in the long term.
"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," Iwata told investors.
"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 went on to say that unnecessary costs should be eliminated and that business operations should always be made to be as efficient as possible, but eliminating employees is not a good way to deal with financial problems.
"We should of course cut unnecessary costs and pursue efficient business operations," he continued. "I also know that some employers publicize their restructuring plan to improve their financial performance by letting a number of their employees go, but at Nintendo, 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."
Source: MCV by way of Andrew Eisen.