Nintendo confirms contractor layoffs amid claims of testing "lull" ahead of Switch 2

eurogamer.net:

Nintendo has reportedly cut 120 contractor testing roles at its North American operation — with an unspecified number said to have been converted to full-time positions — as part of a major restructuring effort that comes amid claims of a testing «lull» ahead of Switch 2's arrival.

That's according to Kotaku, which describes the restructuring — based on word from a number of former and current contractors — as a «massive downsizing» of Nintendo's Washington-based testing team. While the publication's story doesn't put a number on the job cuts, reporter Ethan Gach said he understands «roughly 120 contractor positions have been eliminated at Nintendo of America» in a follow-up post on social media.

In a statement confirming its restructuring, Nintendo told Kotaku it had reorganised its Product Testing functions to «drive greater global integration in game development efforts» and «better align [Nintendo of America] with interregional testing procedures and operations.»

The company also confirmed the move would result in «some contractor assignments ending, as well as the creation of a significant number of new full-time employee positions.» It did not specify how many workers would lose their jobs versus the number of newly created full-time positions, but did say those impacted by the job cuts would receive «severance packages and… assistance during their transition.» Kotaku sources added those going full-time «appear to be getting moved out of software testing.»

Nintendo of America's restructuring efforts reportedly come amid a «lull» for its testing department, with Kotaku's sources saying no new major first-party games are currently in the testing pipeline. The claim follows reports earlier this year that Switch 2 — which was originally expected to arrive in 2024 — has now seen its release pushed back to