A Masterclass in Leadership: When Nintendo’s CEO Pressed “Pause” on Layoffs

By Paul Wealls

In 2014, Nintendo wasn’t exactly winning the game. Despite the company’s iconic status (we’re talking about the people who brought Mario, Zelda, and Pokémon into our lives), things were grim. Sales were down, profits were tanking, and layoffs seemed inevitable.

But then, in an act that deserves a standing ovation, Satoru Iwata, Nintendo’s CEO, pulled a move straight out of the leadership playbook most of us wish more people would read.

Instead of handing out pink slips, Iwata took a 50% pay cut. Yes, you read that right—he halved his own salary to save jobs. His reasoning? He believed layoffs would damage morale and productivity, making it even harder for the company to bounce back.

Iwata’s actions were more than just a gesture of goodwill. They were a masterclass in exceptional leadership. Here’s why:

1. Empathy Before Ego Iwata understood that leadership isn’t about self-preservation; it’s about service. He put his team’s livelihood above his own pay check, showing that he valued people over profit margins.
2. Culture First Layoffs might solve short-term financial woes, but they can destroy trust and morale. Iwata knew Nintendo’s magic came from its people. Keeping them engaged and motivated was critical for long-term success.
3. Skin in the Game Leadership often calls for sacrifice. By taking the financial hit himself, Iwata demonstrated accountability in its purest form. If the ship was sinking, he was going down with it—not throwing others overboard to lighten the load.

And here’s the thing: it worked!!! Nintendo survived that rough patch and went on to release the Nintendo Switch a few years later, a console so successful it became the cornerstone of their modern revival.

There’s something profoundly human about Iwata’s choice. In a world where many leaders prioritize shareholder returns over everything else, he reminded us that businesses are powered by people. He played the long game (pun absolutely intended), and it paid off—not just financially, but culturally.

So, the next time you’re facing a tough call as a leader, ask yourself: “What would Iwata do?” Because sometimes, pressing pause on profit to protect your people is the power-up your organization needs to win the level.

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Thank you

Paul Wealls