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Mario Club Co., a 100% subsidiary of Nintendo, has allegedly placed 150 of its 400 staff in a situation similar to a dismissal room. Mario Club previously played the sole role of debugging Nintendo game software. However, in recent years, they also provide operational support for its parent company.

Nintendo Subsidiary Mario Club Co. Allegedly Facing Layoffs That Could Impact Up To 150

According to a Japanese whistleblower website LeakPress, around 150 employees have been placed in a situation similar to “eviction rooms”. The report claimed the aim is to layoff the employees.

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It is claimed that employees who were previously divided into different titles have now been consolidated into groups regardless of their title. The groups in question were nothing related to development as follows:

  • Capable employees working on the front lines
  • Employees who do normal work
  • Employees who don’t do their work
  • Employees who cause trouble
  • Employees who hold their colleagues back and, at worst, force them to take leave or quit

Employees said the situation on the scene has become “hellish” and has caused some people to develop mental illnesses. It is also claimed that Mario Club doesn’t raise salaries regardless of whether the employee exceeds expectations. Therefore, “talented employees working on the front lines” and “employees who do not work” all earn the same salaries.

While executives who set up the eviction rooms earn several times higher wages, employees who have worked there for many years are still struggling to make ends meet.

According to the whistleblower website, employees have no means of voicing their concerns to executives, and those high up have made it clear that they don’t have the intention of listening.

It is believed that the plan is to wear the employees down slowly until they voluntarily quit. This tactic is often used by Japanese employers to avoid paying severance packages to employees.

Mario Club is sometimes called Kyoto research center and has been credited in numerous Nintendo games. They have been credited for debugging, testing, or listed under the special thanks credit screen. They officially became Nintendo’s subsidiary in 2009.

Nintendo has debunked the news. “We have confirmed with Mario Club Co., Ltd. that the rumored information in the report is untrue,” the company said.