Nintendo is reducing its workforce of undisclosed contractors.

Nintendo of America is presently undergoing a restructuring process that involves the termination of an unspecified number of contractors engaged in game and hardware testing. The extent of the impact remains uncertain, but it is believed to affect more than 100 contractors.

In a statement provided to Kotaku by a spokesperson for Nintendo, it was mentioned that these changes will result in the conclusion of certain contractor assignments, along with the creation of a significant number of new full-time employee positions. According to the report, some contractors collaborating with Nintendo of America feel they have been exploited and inadequately compensated while seeking full-time employment with the company. While some testers are being offered new roles outside of software testing, others will be released from their contracts. Nintendo has assured that those affected will receive severance packages.

The complete statement furnished to Kotaku is as follows:

“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.”

The report further elaborates that three contractors, who spoke with Kotaku, observed a “lull” period where no new first-party games were undergoing testing. Furthermore, none of them had been involved in testing the anticipated Switch 2, which was initially expected to launch in the latter half of the current year. As a result of these cutbacks, some contractors have expressed apprehension regarding their ability to thoroughly test Nintendo’s major titles.

Regrettably, layoffs persist as a prevailing trend this year. Recently, Certain Affinity let go of 25 of its staff, and just last month, Sony downsized its workforce by 900 employees.