Nintendo of America is downsizing its testing system during a reported lull in production, which involves laying off contracted testers and replacing some with permanent positions, according to a report by Kotaku that was confirmed by Nintendo.

Four current and former employees told Kotaku that the layoffs could affect over 100 contractors, though the exact number is not yet known. Many of the testers who are being made into full-time employees are also leaving the testing department

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

The spokesperson said that the restructuring of the testing division would result in layoffs among contracted employees, but confirmed that they would be receiving severance packages. According to Kotaku, some of the testers had been working with the company for more than 10 years. No full-time employees were affected.

“These changes will involve some contractor assignments ending, as well as the creation of a significant number of new full-time employee positions,” they said. “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 statement finished.

According to three of the contracted testers, there has been a lull in Nintendo’s testing department, with no new major first-party games in the pipeline for release. Reports have suggested that the Switch’s successor was delayed from the second half of 2024 to March 2025, and the company currently has little slated for the remainder of the year. Nintendo did not comment on the status of its testing pipeline.

This news comes among a series of layoffs within the gaming industry at companies like PlayStation, Microsoft, and EA. Nintendo has escaped layoffs in the past, but not even it is safe from this recent wave.