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

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 games and hardware 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 March 2025 to ensure more launch stock, although that date could slip further.

Today’s news of contractor layoffs follows previous claims of fractious relations between Nintendo of America and its extensive contractor workforce. Reports surfaced in 2022 highlighting criticisms around the way Nintendo differentiated between full-time and contract staff in terms of pay, benefits and a feeling of inclusion, as well as the lack of a solid progression path to becoming a permanent employee – reports Nintendo of America boss later called “troubling”. Later that year, a Nintendo QA contractor won a $26k settlement after taking Nintendo to court claiming they were fired after asking about unionisation.