Nintendo (NTDOY) to increase workers' base wages by 10%
The company will increase base wages by 10 percent, even as it looks to trim things like its full-year profit forecast.
As reported by outlets like Reuters, Nintendo (NTDOY) shared plans on Tuesday to increase the base pay of its workers by 10 percent amid calls by Japan Prime Minister, Fumio Kishida, urging Japanese companies to increase wages amid rising inflation. As pointed out by Reuters, Japan’s rising inflation has made an impact on the company’s economy which had previously been conditioned to years of deflation and stagnant wages.
Additionally, Japan is currently preparing for its annual spring round of labor negotiations, with companies like Nintendo seeking to further secure its workforce. “It’s important for our long-term growth to secure our workforce,” said Nintendo President, Shuntaro Furukawa, during a recent earnings briefing.
“For companies that can afford to do so,” Reuters explains, “higher salaries may also help them attract talent as a falling birth rate and low immigration leave Japan with serious labor shortages.”
Nintendo raising base pay by 10 percent follows actions taken by companies like Fast Retailing Co Ltd (parent company of clothing chain Uniqlo) which announced last month plans to raise wages by as much as 40 percent. In terms of why Nintendo may not be raising wages as sharply as Fast Retailing, it’s currently looking to trim its full-year profit forecast.
Recently, Nintendo cut its operating profit by 4 percent to 480 billion yen ($3.6 billion) for the year to March 31. Nintendo also revised its annual software sales forecast, lowering it to 205 million units from 210 million, and slashing its Switch console sales target to 18 million units from the 19 million figure it sat at previously.
Nintendo has no plans at present to raise console or software prices, but aren’t opposed to considering it depending on the circumstances. For more on Nintendo raising worker wages amid economic difficulties, be sure to read through the full report from Reuters. Also catch up with some of our previous coverage, including games like Splatoon 3 selling more than 10 million units since launch, and how the Nintendo Switch had around 112 million Annual Playing Users in 2022.
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Meanwhile at Intel:
According to a source within Intel, employees below and including Principal Engineer will be receiving a 5% pay cut with the exception of hourly and junior-level employees, who will not be affected by the cuts.