Nintendo of America Reportedly Laying Off 120 Contractors

27.03.2024 - 22:42 / gamerant.com / Jos / Of America / Nintendo

Recent reports have suggested that Nintendo of America underwent significant restructuring, resulting in the layoff of approximately 120 contractors. Apparently, this move is part of an effort to reorganize the testing operations at Nintendo's Washington state headquarters.

Established in 1980, Nintendo of America operates as the primary publisher, distributor, and marketer of Nintendo products in the United States and Canada. It oversees the localization, marketing, and distribution of Nintendo's popular video game consoles, handheld devices, and software titles in the region, including iconic franchises such as Mario, The Legend of Zelda, and Pokemon. Additionally, Nintendo of America handles customer service, manages partnerships with third-party developers, and plays a pivotal role in shaping Nintendo's presence and success in the North American market.

According to Kotaku, a recent restructuring at Nintendo of America is anticipated to impact more than 120 contractors, as revealed by four current and former employees. This restructuring coincides with a reported slowdown in Nintendo of America's testing department. The objective behind these changes seems to be to enhance global integration in game development initiatives and synchronize Nintendo of America with interregional testing protocols and functions. Furthermore, the restructuring involves transitioning many contractors to full-time positions, with a notable shift away from software testing roles. This suggests a wider realignment strategy within the organization.

A spokesperson for Nintendo provided a statement regarding the reorganization. While acknowledging the end of some contractor assignments, the statement emphasized the creation of a significant number of new full-time employee positions. The company expressed gratitude for the contributions of departing contractors and pledged support during their transition, including severance packages and assistance from their agencies. These changes come ahead of Switch 2's launch.

On Twitter, a Senior Reporter at Kotaku shed light on the internal messaging from Nintendo, indicating that the company is framing the restructuring as a move to «better integrate» testing across offices rather than solely as a cost-cutting measure. Layoffs have been hitting the gaming industry since the beginning of the year, with several major companies letting go of employees, following the trend from 2023. Recently, the former Mario Kart developer sent layoff notices to a third of its staff, and EA announced that it is laying off about 670 people.

As the gaming industry continues its evolution, even companies with a rich, storied history in gaming like Nintendo, are consistently adapting to embrace new challenges