Nintendo's no-layoff myth: former president reveals Iwata took 50% pay cut instead

Former Nintendo of America president Reggie Fils-Aimé revealed during a lecture at New York University that the company never conducted mass layoffs during his 2006-2019 tenure—not even when the Wii U flopped spectacularly in the market.

Behind this anti-layoff stance was the late CEO Satoru Iwata's management philosophy. When Wii U sales collapsed, Iwata cut his own salary by 50% for five months rather than firing staff like other companies would. His reasoning was straightforward: layoffs destroy team morale and undermine the ability to make great games. Reggie quoted Iwata in his speech: "We think about how we treat people—we never want to solve problems through layoffs or mass dismissals. It's not in our DNA."

This humanistic approach stands out sharply in the gaming industry. Over recent years, Microsoft, Sony, and Ubisoft have all gone through massive layoff waves, cutting hundreds or thousands of jobs at a time. Nintendo took the opposite path, using stable teams to build phenomenon-level hardware like the Switch, masterpieces like The Legend of Zelda: Tears of the Kingdom, and even successfully expanding their IP into film.

From a business perspective, Nintendo's strategy represents a long-term win. Retaining core teams means preserving development experience, creative accumulation, and team chemistry—intangible assets that matter more in game development than short-term cost control. Iwata proved a principle with his own paycheck: real leadership during hard times isn't about blaming employees, it's about shouldering the pressure yourself first.

This corporate culture also explains why Nintendo consistently delivers high-quality games. When developers don't worry about getting cut next quarter, they can focus on polishing game details and dare to try innovative mechanics. Compared to companies that lay off frequently, Nintendo has demonstrated through action that treating employees well and achieving business success aren't contradictory—they reinforce each other.