Why Iwata refuses to lay off staff.

#51XechsPosted 7/6/2013 9:11:35 AM
I think iwata in this particular situation knows firing is not key, he needs almost double staff for HD games and needed people to make 3ds fly off (3ds accounts for 30-40% of monthly handheld and console sales). So taking a pay cut to keep talent in hopes of rebound is okay.

But lets not act as if nintendo doesn't also do the necessary evils. They had huge rounds of firings in 2009 because of economic collapse to stabilize and 2012 they had to restructure some studios (a more profitable year). This situation is more like the 2011 year where it was rough but he refused to lay people off to rebound in 2012 (but once things stabilize he had to restructure which unfortunately have to have some layoffs).
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#52Inferno700Posted 7/6/2013 9:16:49 AM
squatch22 posted...
Nintendo stock: 11,630 - Sony stock: 2,166
http://img.gamefaqs.net/screens/1/9/b/gfs_75574_2_16.jpg


Stock value literally proves nothing. Companies can manipulate stock prices. I believe it's Dollar General that uses a tool called Stock Split to keep the value of its individual stocks low enough for its customers to purchase. If the price gets to high they use this to keep the price low. It increases the number of stocks on the market but the total value of the stocks outstanding for the company remain the same. Google and Apple do the opposite to decrease the number of stocks which increases the individual price but keeping the total value of outstanding stocks the same. Different companies have different goals when it comes to stock prices. Most don't use these tools however.

Source: Business major Economics is my specialty.
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#53Holy_OblivionPosted 7/6/2013 9:29:45 AM
Great man
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#54Inferno700Posted 7/6/2013 9:33:03 AM
Although this is good news and speaks highly of Nintendo the fact that a Japanese company values it's employees is no surprise to me. The culture there is completely different from here in the US. Actually the culture around the globe is vastly different than what most think. In Japan employees are committed to a company and tend to have worked for 1 to 2 companies in their life. This is because the owners/management of these companies truly value their employees like family. Americans on the other hand change jobs on average every 3 to 5 years and see a company simply as a source of income. I can go on for a while about the cultural differences around the world but doubt this is the place. It is very interesting though.
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#55fuzi11Posted 7/6/2013 10:15:14 AM
BeanBeanKingdom posted...
http://www.polygon.com/2013/7/5/4496512/why-nintendos-satoru-iwata-refuses-to-lay-off-staff

Living proof at least one CEO is still capable of human feelings.


Did I miss something? Why would he lay off staff in the first place?
#56DrRMPosted 7/6/2013 6:03:12 PM
fuzi11 posted...
BeanBeanKingdom posted...
http://www.polygon.com/2013/7/5/4496512/why-nintendos-satoru-iwata-refuses-to-lay-off-staff

Living proof at least one CEO is still capable of human feelings.


Did I miss something? Why would he lay off staff in the first place?


the less employees you have to pay to the more money you can hold and invest on other things.

is what must company do on low financial times:

money > employees
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#57Sailor GoonPosted 7/8/2013 11:15:34 AM
To be perfectly honest, I think it should be at the point where they should consider laying off people. The company is running itself into the ground, sales are horrible right now. Iwata couldnt make a good decision if his life depended on it. He's got the lowest approval rating right now.
No one likes laying off people, but its a necessary evil if you want your company to survive. You can't keep making excuses like "oh its not our fault at all, it's all the Yen's fault". They need to start taking some drastic measures.
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#58jbhensPosted 7/8/2013 1:13:03 PM
Sailor Goon posted...
To be perfectly honest, I think it should be at the point where they should consider laying off people. The company is running itself into the ground, sales are horrible right now. Iwata couldnt make a good decision if his life depended on it. He's got the lowest approval rating right now.
No one likes laying off people, but its a necessary evil if you want your company to survive. You can't keep making excuses like "oh its not our fault at all, it's all the Yen's fault". They need to start taking some drastic measures.


You obviously know nothing about business. Actually, anyone in here that thinks layoffs are necessary have probably never worked a job and don't know what it's like out in the real world. Generally, layoffs hurt companies in the long run.
#59icarus231Posted 7/8/2013 1:22:17 PM
Golden Maven posted...
Wow. Will all the brown nosing going on, you would think Nintendo employees (or aspiring) post here.


Its not brown nosing its giving credit where credit is do. They could just lay off thousands like sony to cover the cost of losing money.
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#60Sailor GoonPosted 7/8/2013 3:32:46 PM
jbhens posted...
Sailor Goon posted...
To be perfectly honest, I think it should be at the point where they should consider laying off people. The company is running itself into the ground, sales are horrible right now. Iwata couldnt make a good decision if his life depended on it. He's got the lowest approval rating right now.
No one likes laying off people, but its a necessary evil if you want your company to survive. You can't keep making excuses like "oh its not our fault at all, it's all the Yen's fault". They need to start taking some drastic measures.


You obviously know nothing about business. Actually, anyone in here that thinks layoffs are necessary have probably never worked a job and don't know what it's like out in the real world. Generally, layoffs hurt companies in the long run.


I was a business manager for 8 years. I think I know a little more than some teenager on Gamefaqs. How the hell do layoffs hurt companies? Employees are a companies biggest expenditure. If a company is in financial trouble, getting rid of employees greatly improves the financial situation.
Sure it sucks for the person getting laid off, but its sometimes a necessary evil.
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