Reggie Fils-Aimé Says Mass Layoffs Are A Warning Sign For Game Devs
Former Nintendo of America president Reggie Fils-Aimé is usually very careful with his public comments. Even after leaving Nintendo, he has mostly stayed polished, diplomatic, and very much “industry elder” mode.
But in a recent conversation at NYU with professor Joost Van Dreunen, Reggie gave game developers a pretty direct warning: if a company has a recent history of mass layoffs, treat that as a serious red flag.
The topic came up during an audience Q&A, where someone asked whether Nintendo’s approach to employee development is different from other big companies in gaming. The question pointed to Nintendo’s long-term talent-building culture, compared with companies that have been cutting staff aggressively over the past few years.
Reggie started by talking about Nintendo’s habit of growing people over time, then brought up Xbox as another example of a company where he had seen a people-focused mindset. He said he knew the Xbox team well because they were based near Nintendo of America, and he described Xbox boss Phil Spencer as someone who valued developing employees.
But Reggie also pointed out the uncomfortable business reality behind Microsoft’s acquisition of Activision Blizzard King. When one major company buys another company with overlapping publishing teams, some jobs are likely to disappear. That does not automatically mean every leader involved is bad, he suggested, but it does mean leadership has to own the consequences.
His bigger point was simple: if a company cuts 5%, 10%, or even more of its workforce, leaders should seriously reflect on what went wrong. In Reggie’s view, reducing headcount at that scale should come with accountability, not just corporate wording about “restructuring” and “efficiency.”
That comment hits hard because Xbox has gone through multiple major layoffs in recent years. After the Activision Blizzard acquisition, around 2,000 Xbox employees were cut in January 2024. More cuts followed later that year, and Kotaku notes further layoffs hit King and other parts of the business in 2025. Microsoft also carried out a massive company-wide layoff of 9,100 jobs last July, with Xbox affected too.
Then Reggie gave the advice that senior developers will probably remember most: look closely at any company’s layoff record before accepting a job. If that company has carried out mass layoffs in the last four, five, or six years, he said that should worry you — because it shows they may be willing to do it again.
For developers in Malaysia and Southeast Asia, this matters more than it might seem. A lot of SEA talent works with global publishers through support studios, outsourcing, QA, art, co-development, esports operations, localisation, and remote roles. When big Western companies cut teams, the shockwaves can eventually reach contractors, partner studios, and regional opportunities too.
It is also a reality check for young Malaysians dreaming of “working in games” overseas or remotely. Big brand name does not always mean job security. A famous publisher, a massive franchise, or a shiny acquisition can still come with unstable employment if the company culture treats layoffs as a normal business tool.
To be fair, the industry is messy right now. Many major gaming companies have cut jobs in the past few years, so avoiding every red flag may be impossible. Even Nintendo, often seen as more stable, faced criticism after contractors at Nintendo of America lost steady work last year.
Still, Reggie’s point is worth taking seriously. If you are a developer, artist, esports producer, writer, or any game industry hopeful from SEA, don’t just ask what games a company makes. Ask how it treats people when business gets tough.
Source: Kotaku
