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Microsoft Lays Off 34 Japanese Xbox Employees

Thanks to GameSpot for their article discussing the layoff of 34 Microsoft employees from its Japanese Xbox division. This accounts for just 17 percent of their Xbox workforce in Japan, but apparently the March 20th layoffs, documented in Nikkei BizTech, "..caused a commotion among the workers because of differences in business practices between Japan and the United States." The harsh 'escorted from premises' style of layoffs is not so common in Japan, according to the article, and so "..according to one of the employees who was cut, it felt as though they were treated like criminals." Needless to say, the layoffs, according to division head Par Singh, were because "sales of the Xbox in Japan had been extremely disappointing."

15 of 91 comments (clear)

  1. Welcome to the world of corporate America by shaka999 · · Score: 5, Insightful

    I'm not sure how layoffs should be done but I know the way most American companies do it today isn't the solution. It does treat the ex-employees as if they were criminals. In my experience the ex-employees are escorted, in front of coworkers, to a small office. Given the news and any severence then given a swift kick out the door. I've even been in companies where they didn't let the employee pack their cube. Rather someone boxed it for them and shipped it...

    --
    One should not theorize before one has data. -Sherlock Holmes-
  2. Re:I don't get it by d3kk · · Score: 5, Funny

    I think the question is "Why is the XBox so popular in the states?"

  3. Not spite: safety by GuyMannDude · · Score: 4, Informative

    The reason employers do this "kick them out quick" approach is not out of spite but, rather, to protect themselves from employees who might try to exact some revenge on their way out. A just-fired employee might try to sabotage the computer system (particulary if file permissions are not set correctly). There's a whole bunch of things that a disgruntled employee can do to hurt his former employer. Giving them access to any work equipment or materials just after they got laid off or fired is very unwise.

    GMD

  4. What a bunch... by darkov · · Score: 4, Insightful

    The employees were then told to check their e-mail inboxes

    What a shitty and gutless way to fire someone. I think firing someone any other way than face to face whould be illegal.

    1. Re:What a bunch... by wolf- · · Score: 4, Informative

      And layoffs should not be a drop dead event.
      A WISE CFO knows that layoffs are coming.
      A WISE CEO has detailed layoff/senority policies in place.
      A WISE employee knows where he is in the pecking order of things.

      When we have had to scale back our shop, the poor guy at the bottom knew it was coming. We all did. But it wasn't a "walk in on friday, here is your check dont come back on monday" deal. It was a "we are going to have to let you go, we can keep you here for 2 weeks let us know what days you need off to do interviews..."

      Current companies, under the guise of protection, whether protecting company assets, or executive asses, hide the bad news, no one really knows how things are going, or work in the organization.

      All it does is create a hostile group that will not want to come back to work if things pick up, wont buy your product, will tell their friends not to buy your product.

      To this day I will not buy Arrow shirts. Why? My wife's cousin walked in one day after 15 some years, thank you, don't bother coming back, we are shipping your job overseas. Zero warning. No transition process, nada.

      Its an ethics issue. But then, we arent allowed to discuss right and wrong anymore, just what is legal or illegal. Wait, no, we can't do that any more.

      --
      ----- LoboSoft specializes in Digital Language Lab
  5. it felt as though they were treated like criminals by deanj · · Score: 5, Insightful

    I know this feeling. When I was much younger, I had a lot of company loyalty and was convinced that if I worked hard, I would be treated right. I watched layoff after layoff at two companies before i finally got caught up in one, and it was like a punch in the gut.

    That was a giant wake-up call to look out for #1, because if you don't, all you'll get is #2.

  6. Re:So enlighten me please... by henrik · · Score: 5, Informative

    The Japanese way is not to lay off anyone. The company is your family and takes care of you througout life. As thanks for this you are loyal to your company and work good for it.

    Laying off people the American Way makes people lose face, not very popular in Japan (or East Asia).

    Never let anyone lose face, number one rule of social interaction in Japan.

  7. They're not going to take that chance by GuyMannDude · · Score: 4, Insightful

    The way the company handled it though came across as if they trusted me about as much as they trusted a potential disgruntled employee. It comes across as a lack of respect for the person leaving and their level of responsibility.

    Yes, I understand that it's not "nice" or "fair" but companies don't really care about those things. They are playing it safe by assuming you're as bad as everyone else. Besides, would it really be any "nicer" for the company to escort certain employees out and let others take their time?

    The best part of it was the companies core values and beliefs touted the fact that they believed firmly in giving individuals respect and that individuals treated with respect acted accordingly. But their treatment of those is another story.

    You seem to already understand that their stated core values were really just words on a page to them. Also, you should double check that their stated core values really say "treating individuals with respect" and not "treating employees with respect". Since you just severed your relationship with them -- amicable or not -- I'm not sure why I see that they should still be held to those core values with regards to a now-former employee.

    I'm not trolling or flaming you. I do understand the points you're making. I'm just saying that you have to look at this whole situation from the company's point of view. You remember how the LAPD told O.J. "Sure, you can turn yourself in down at the station when it's convienent, Juice. We don't want this to be any more embarrasing for you than it already is." Well, we know how well that approach went. Even if you seem like a nice guy, no manager is going to risk that one-in-a-million chance that you might go bonkers on your way out. That's the way PHB think. Remember, it's called "Human resources" and not "personel" for a reason.

    GMD

  8. Re:I don't get it by M3wThr33 · · Score: 5, Insightful

    Games don't appeal to them
    Controller is huge, even the S
    The marketing is INSULTING
    It isn't Japanese
    They had a recall when it first came out
    It doesn't have Final Fantasy or Dragon Warrior

    Want me to go on?

  9. Just one sample of how bad it is... by TalMaximus · · Score: 5, Informative

    ...can be seen at IGN's monthly article "Gaming Life In Japan". Every month they release hardware and software sales for what are considered the major gaming consoles in Japan. Take a look at what was presented in June's article. The numbers are quite disturbing for Microsoft, though I'm sure that disappoints all the Open Source fans out there. ;)

    Hardware Sales in Japan:
    PS2: 44,300 (1,397,700)
    Game Boy Advance SP: 31,800 (1,116,900 this year)
    Game Boy Advance: 6,900 (890,800)
    GameCube: 1,900 (284,800)
    PSOne: 910 (42,800)
    Xbox: 770 (58,00)
    Swan Crystal: 320 (23,200)

    I don't know which is funnier:
    The fact that the PSOne outsold the Xbox during May, or the fact that this isn't the first time it has happened.

    Here's a link to the actual article, but to give a fair warning, you have to be an IGN Insider to read it.

  10. Re:So enlighten me please... by SuiteSisterMary · · Score: 4, Interesting

    There is a term, I forget the Japanese spelling, but the translation is 'the beside the window tribe.' It refers to one who is given and office, with a window, where the individual will then sit, quietly, until retirement, looking out the window, never again given anything useful or important to do.

    --
    Vintage computer games and RPG books available. Email me if you're interested.
  11. Companies creating bitter employees by Man+In+Black · · Score: 4, Insightful

    The reason employers do this "kick them out quick" approach is not out of spite but, rather, to protect themselves from employees who might try to exact some revenge on their way out.

    Really, if there is worry that ex-employees will try to sabotage things, shouldn't that be an indication that the company didn't treat them very well in the first place? I guess escorting them out is just a continuation of that...

    Anyone who gets fired can be expected to be a little upset... but I think it takes a vested hatred of the company to start sabotaging things.

    --
    -"One machine can do the work of fifty ordinary men. No machine can do the work of one extraordinary man." -EH
  12. Re:I don't get it by ronfar · · Score: 5, Insightful
    It's too big. In the U. S., this doesn't matter so much. Some people might even think that the big, black XBOX is kind of cool. In Japan, it is taking up too much room in country where wealth used to be measured by the amount of space you had in your living quarters (and may still be).

    Besides that, it is going to be hard for anything to make a dent in the Playstation 2's popularity in Japan. Sony is just considered a cool, superior brand over there. Yes, I suppose cultural superiority is a factor, but I don't think that is all of it. I've noticed that when I ask the Asian people I know "Which is cooler, Sony or X?" they invariably say Sony.

    I also think that (and I'm no expert, not owning one) the Xbox's lineup has something to do with it. The big system selling game is Halo, a First Person Shooter. First Person Shooters have never been popular in Japan. Ever notice how few Japanese origin FPSs there are for the various Japanese consoles? Even Metroid Prime was made by an American second party using the Nintendo Metroid license. (This is why the N64 also had a tough time over there.) I once remember noting that the Japanese seem to like fighting games the way Americans like FPSs, if I can go by the huge number of fighting games coming out of Japan and the huge number of FPSs coming out of the U. S. (I could be way off on that but I don't think I am.)

    Basically, I think that there are cultural reasons why the XBox hasn't caught on in Japan that don't have anything to do with it's relative merits as a console or just cultural superiority.

    --
    All the creatures will die, And all the things will be broken. That's the law of samurai. (Jubai, 1605)
  13. Re:So enlighten me please... by Anonymous Coward · · Score: 5, Insightful

    And to a degree, this used to be the way things were in America. At least, if you were part of a super powerful union. But techies don't have a union and even unions don't assure this kind of expectation anymore.

    It's undestandable that company changs can lead to people having to be laid off, but the problem is that it's no longer a matter of "our company is losing money, so we can't afford to keep you". Instead, it's a matter of "our company is making a profit. In fact, we're making more money than any other year in our history. But we're not making as much as investors wished we would, so we're going to have to cut back a ton to make the numbers look good and encourage more investors so our stock goes up".

    I like the place I work. It's a huge company with about 40,000 people and I'd love to work here the rest of my life. The problem is, I know that I could be fired any day of the week on a whim and that prevents me from being as loyal and dedicated as I could be. They're cutting their own nose off there in lost production and customer service because it's hard to be enthusiastic about a place that will just end up a blip on your resume.

    I know that years ago people would have had one, two maybe three jobs on their resume by the end of their career. I wonder what this generation's resumes will look like in the year 2040. I bet we can expect to see ten page resumes become the norm.

  14. It's not Xbox Japan's fault it's not selling by sandalwood · · Score: 4, Interesting
    Fair or not, I think this incident will further damage Microsoft's reputation as a game industry player in Japan. While a layoff handled like this may be common in the US, this incident was a newsmaker for Japan, and with good reason.


    As an aside, I feel really sympathetic to all employees of Xbox Japan. They are basically trying to sell ice to Eskimos (the Xbox is *that* unsuited to the Japanese market), and it's not their fault they can't. It's the boneheads at Redmond designed the stupid thing, and yet these guys are taking the fall for it. How maddening that must be.