One of the biggest video game companies in the world is closing its doors in the Bay Area.
Nintendo confirmed in a statement to KCBS Radio on Monday that it will close a satellite office in Redwood City "over time." The makers of the popular Switch console didn't specify how many employees were affected or when the office would close, although 118 LinkedIn members listed the San Francisco Bay Area as their location as of Monday night.
The Kyoto, Japan-headquartered company told KCBS Radio it will relocate employees from Redwood City and Toronto to its North American headquarters in Redmond, Washington and Vancouver, British Columbia.
Kotaku first reported the closure on Friday, citing sources who told the outlet the shuttering coincided with Nick Chavez' resignation as Senior Vice President of Sales and Marketing.
The company confirmed to KCBS Radio that Chavez had stepped down as SVP of Sales, Marketing and Communications, and Devon Pritchard, Executive Vice President of Business Affairs and Publisher Relations would lead Chavez’ previous departments on an interim basis.
Nintendo’s sales and marketing departments worked in the Redwood City office, as did its merchandising field team, according to information still available on the company's careers site as of Monday night. A source told Kotaku that much of the staff was upset about the closure.
Satoru Iwata, Nintendo's former Chief Executive Officer who died of complications related to a tumor in 2015, was averse to corporate reorganization during his time atop the company. Kotaku noted that Iwata told investors in 2013 that layoffs hurt staff morale, while Iwata and other company directors reportedly took pay cuts in 2014 amid the Wii U's disappointing sales performance.
Still, Nintendo laid off over 300 people in 2014 while restructuring its European division, and reportedly laid off most of the 60 people working at its South Korean office in 2016. Since then, Nintendo has regained dominance as a console manufacturer thanks to the Switch, which was released in 2017 as the Wii U's successor.
This September was the first time since November 2018 that the Nintendo Switch wasn't the best-selling console in the U.S., ceding its crown to Sony's PlayStation 5. Last month, Nintendo started selling an upgraded version of its Switch.
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