As first reported by Kotaku Nintendo America has confirmed they are laying off a number of contractors in their game testing department and converting others to full time employees.

Nintendo's statement reads:

Nintendo of America (NOA) has reorganized its Product Testing functions to drive greater global integration in game development efforts. The changes will also better align NOA with interregional testing procedures and operations.

These changes will involve some contractor assignments ending, as well as the creation of a significant number of new full-time employee positions. For all assignments that are ending, the contractors' agencies, with NOA's support, will offer severance packages and provide assistance during their transition.

For those contractor associates who will be leaving us, we are tremendously grateful for the important contributions they've made to our business, and we extend our heartfelt thanks for their hard work and service to Nintendo.

While details from Nintendo themselves are scarce it is reported the layoffs could be more than 100. 3 former contractors claim the shift has come due to the fact that their is a lull within Nintendo's first party lineup which has also resulted in the Switch 2 being delayed and therefore nothing to test.

Since none of that is confirmed by Nintendo themselves take it all with a grain of salt.

We certainly hate to see anyone lose their job and hope everyone lands on their feet elsewhere as soon as possible