Bandai Namco cuts workforce as game titles are canceled

Bandai Namco has begun reducing its staff following the cancellation of the production of several console and smartphone games owing to lower-than-expected sales. The Japan-based company, popular for its iconic gaming franchises, has been under pressure to cut costs and cope with market changes.

Bandai Namco Studios, a division of the company, since April, has transferred around 200 of its 1,300 employees to offices where they have been given little or no work, a tactic used by some Japanese companies to encourage voluntary resignations. Approximately 100 employees have already left and other members of the workforce are scheduled to leave and there will be more in the coming months.

Bandai Namco pushes staff to quit through expulsion rooms

Intending to reduce the staff while still adhering to Japan’s stringent labor protection laws, Bandai Namco has decided to make use of “oidashi beya” or “expulsion rooms.” These are spaces where employees are given no meaningful work to induce the employee to quit. Employees who have been put in these rooms tend to spend that time looking for employment prospects as they wait for redundancy payment offers.

This practice is not uncommon, especially in Japan, where companies are bound by certain legal constraints on firing employees. However, Bandai Namco has openly denied using this practice to force employees out. A representative of the company commented that such moves aim at relocating workers to other assignments, although some may face delays in receiving new work.

Despite this, internal sources indicate that the absence of work in these rooms has resulted in a high number of worker resignations. In the last few months, Bandai Namco has already canceled or postponed the development of several game titles, and with the decrease in the number of projects in sight, several employers have found themselves with nothing to do.

Bandai Namco shutters games amid plummeting demand

The job cuts are a result of the company’s decision to abandon a few high-profile games. The company recently announced the closure of the mobile game Tales of the Rays and is planning to close Blue Protocol, an online multiplayer game in January. Apart from these shutdowns, some games underwent suspension or discontinuation of development, including the ones with the characters from the famous anime Naruto and One Piece.

Rival Companies in the Japanese gaming market have been facing the same problems. Another leading publisher Square Enix Holdings Co. for instance has also scrapped several unprofitable mobile games, and Sony Group Corp. recently discontinued Concord, its online game just two weeks after launch. These measures highlight the wider problems experienced by the gaming industry, especially regarding the changing behavior and preferences of people.

Bandai Namco faces anonymous accusations, denies claims

With the restructuring effort underway, an anonymous website launched last month, claims that Bandai Namco has been employing several intimidating forms to push employees to quit. The company accepts, however, that such a website does exist but does not accept the allegations. A representative of Bandai Namco refused to give additional information on these claims but stated that these allegations were not true.

The use of expulsion rooms is controversial as reported and despite the official position of the company. For a considerable duration, this practice has been criticized due to its effect on employee morale and psychological well-being. Workers in these types of rooms are usually troubled about their job prospects with the company and prolonged periods without tasks can negatively affect their mental health.