More than a decade after Satoru Iwata shared his views on layoffs and workplace morale, the late Nintendo president’s comments are once again being widely discussed as the video game industry continues to experience waves of job cuts.
During Nintendo’s difficult Wii U and Nintendo 3DS era, Iwata argued that reducing staff might improve financial performance in the short term, but it would ultimately hurt the company’s ability to create great games.
His philosophy has resurfaced amid ongoing layoffs at several major publishers, with many developers and fans pointing to Nintendo’s different approach under Iwata’s leadership.
Iwata believed creativity thrives with job security
The remarks originated during Nintendo’s 73rd Annual General Meeting of Shareholders in 2013 after investors questioned why the company had not restructured despite reporting multiple years of operating losses. According to Nintendo’s official investor Q&A, Iwata explained that employee confidence was essential to producing memorable games.
He said,
“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.”
Those comments reflected the same leadership style Iwata demonstrated in 2011, when he voluntarily cut his own salary by 50% following the disappointing launch of the Nintendo 3DS instead of reducing Nintendo’s workforce.
Iwata also acknowledged that layoffs could temporarily improve financial performance but argued they would weaken Nintendo over time.
As reported in Nintendo’s investor briefing, he stated,
“I believe that laying off a group of employees will not help to strengthen Nintendo’s business in the long run.”
Instead, he said Nintendo should focus on reducing unnecessary expenses while improving operational efficiency.
Although Nintendo operates under Japan’s labor environment, which differs from many Western markets, the company’s leadership has generally maintained Iwata’s employee-focused philosophy. His comments continue to stand out today as publishers across the gaming industry announce studio closures and workforce reductions.
More than ten years after they were first spoken, Iwata’s words remain a reminder that long-term creativity depends not only on technology and investment but also on giving developers the confidence to innovate without constantly worrying about losing their jobs.
