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130 jobs lost in Nintendo of Europe reshuffle

130 jobs lost in Nintendo of Europe reshuffle

Fri 06 Jun 2014 2:16pm GMT / 10:16am EDT / 7:16am PDT
JobsPublisher

Gro▀ostheim office to close as headquarters consolidated to Frankfurt

Nintendo is making 130 workers redundant at its German office of Gro▀ostheim in a move to lower costs and streamline European operations.

Various arms of the European business will be affected, with some jobs also being lost at the company's Frankfurt office.

"Nintendo of Europe has entered into a consultation process on a number of changes it is intending to make to its European business which, in the long term, will better enable the European business to adapt to the rapidly changing business environment," reads a statement released by the platform holder.

"The measures include the consolidation of the current European headquarters in Gro▀ostheim (Germany) to Frankfurt (Germany), the closure of the warehouse and office in Gro▀ostheim, as well as outsourcing and reorganising some functions.

"These intended measures have not been made lightly and have only been arrived at after thorough analysis and careful consideration. The intended measures will sadly have a direct effect on some of the employees based in the Gro▀ostheim and Frankfurt offices in Germany and would lead to the release of approximately 130 permanent employees.

"Nintendo of Europe is committed to a fair consultation process with the local Works Council in Germany with the objective of providing clarity and support for all affected employees as soon as possible."

Nintendo's fortunes have been somewhat mixed of late, with low sales of the Wii U balanced slightly by a still-strong 3DS. The recent successes of Mario Kart 8, which has shifted a significant number of Wii U hardware units in a bundle deal, have apparently not done enough to save the jobs of the affected.

9 Comments

Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.

2,271 2,440 1.1
Popular Comment
Dan, the game came out a few days ago. I highly doubt that's long enough to vet the long term circumstances of the Euro offices against.

Nintendo is not known for cutting jobs so this is highly unusual.

Posted:4 months ago

#1

Dan Pearson European Editor, GamesIndustry.biz

115 337 2.9
It doesn't seem like too much of a stretch for a company to wait and see how well a tentpole release does before cutting 130 staff, though.

Posted:4 months ago

#2

Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.

2,271 2,440 1.1
Popular Comment
Dan, this doesn't seem like the kind of action a single game would have the impact of altering.

This is more a corporate directional change and restructuring than a firing a people simply to save revenue. This would have happened whether MK8 sold 1 million units or 1,000 units.

Posted:4 months ago

#3

Roland Austinat roland austinat media productions|consulting, IDG, Computec, Spiegel Online

134 75 0.6
Let's not forget that Nintendo had two offices in two states next to each other - Frankfurt and Gro▀ostheim. It is a sad day for many who have been working in Gro▀ostheim for many, many years, but from a business perspective running two offices doesn't make too much sense.

Posted:4 months ago

#4

Julian Beck HR Consultant

39 45 1.2
Nintendo's step is not short sighted at all. Two offices some hundred kilometers away - one with 130, the other with I guess far less than 100 - are ineffective in a market which doesn't depend on regional aspects (like selling fruit, meat etc.). The combining is a logical step. Furthermore, I regularly check the weekly Amazon Top 100; the WiiU console is still a backbencher at place 65 more than one week after release of MK 8. When you walk through the big electronic stores like "Media Markt" and "Saturn", you see the same situation as for the Xbox One - meaning they are dust catchers not top sellers :) The only console which is almost constantly sold out in Germany (and France and Austria) is the PS4.

Edited 3 times. Last edit by Julian Beck on 7th June 2014 11:35am

Posted:4 months ago

#5

Dan Pearson European Editor, GamesIndustry.biz

115 337 2.9
You're probably right, Jim, just seems a cruel irony. Best of luck to everyone affected.

Posted:4 months ago

#6
Julian, it is not about moving the company. It is about outsourcing and killing the whole warehouse organization. It┤ll be interesting to speak to Nintendo at the show in two days.

Posted:4 months ago

#7

Julian Beck HR Consultant

39 45 1.2
Julian, it is not about moving the company. It is about outsourcing and killing the whole warehouse organization. It┤ll be interesting to speak to Nintendo at the show in two days.
well, Frankfurt will indeed remain the only location. And that was the goal of Nintendo. Like I wrote it's a logical step. When you have two locations and your business not only stagnates but goes backwards since the release of the Wii U you have to take action:
"The measures include the consolidation of the current European headquarters in Gro▀ostheim (Germany) to Frankfurt (Germany)."
In detail you're obviously right, they don't move all the functions and departments over, so yes it means quite a significant group of employees will loose their jobs.

Edited 3 times. Last edit by Julian Beck on 8th June 2014 7:57am

Posted:4 months ago

#8

Gil Salvado 3D/2D Artist

34 37 1.1
That's one way to call for investors ...

Posted:4 months ago

#9

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