Nintendo president Satoru Iwata (pictured above) said that layoffs may solve their short-term financial issues, but will not do well in the long run for employee morale. This is why Nintendo refuses to layoff employees.
“If we reduce the number of employees for better short-term financial results, employee morale will decrease,” said Iwata in a Q&A session. “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 said that the yen is strengthening against the U.S. dollar, which makes the company’s financial situation a little bit more bleak. Today’s games also requires a lot more manpower to create games than in the past.