Nintendo outsources customer support to South America eliminating 200 US-based long-term contractors

Nintendo of America has reportedly outsourced its U.S. customer support operations to countries in South America, including Argentina, Brazil, and Nicaragua, leaving an estimated 200 long-term contractors seeking new jobs as the Switch 2 approaches its first holiday season.

IGN first detailed the report, and this news comes just six months after Nintendo sent letters to contractors notifying them that their agency agreements would be terminated in September.

Sources related to the matter spoke to the news outlet anonymously, out of fear of reprisal from Nintendo. Many contractors had worked customer support roles for years, given 11-month contracts to avoid full-time hiring requirements under U.S. law, followed by mandatory two-month breaks for unemployment eligibility, with contracts being renewed at higher rates. 

The contractors received limited benefits, including health coverage via agencies and occasional free or discounted Nintendo games via the company itself. One contractor detailed, “Everyone that I have worked with has worked here for years.”

The notification for termination came through the agencies, with no direct word from Nintendo, with some contracts ended prematurely with no severance.

For some U.S. contractors whose deals extended through September, they have been tasked to train their South American replacements. Previously, Nintendo onboarded new U.S. hires in cohorts, carefully cherry-picking the top three to seven performers. Now, U.S. agents are supposed to resolve “too difficult” cases for the newcomers.

One contractor explained:

“The training of our replacements by existing agents is something that has never been done with new hires before. New hires were previously brought on in large groups and whittled down to the best three to seven agents.

While help was always available to new agents, there was always an expectation to see a contact through to the end to ensure that every agent knew how to do everything. Now we are expected to finish contracts that are deemed too difficult for new agents.” 

Another contractor expressed frustration over the whole scenario, stating:

“We feel pretty cheated by the whole process. Nintendo just released a highly popular console, and they’re making plenty of money, yet the minimum wage in the areas they are hiring from equates to about $1/hr in USD.

They are basically sacrificing the quality of well-trained agents to save a bunch of money, and it’s left us all feeling very… Vulnerable? Crappy? Obviously, we knew that taking contract jobs that this could happen, and there was no guarantee of returning after contract breaks.”

When asked for a statement, Nintendo responded with:

“While we have nothing to announce about our internal business activities, the claims shared with IGN include inaccurate information. At Nintendo of America, we are extremely thankful to have partnered with several companies and their talented contractors over the years to deliver high-quality customer service experiences.”

Nintendo declined to specify which of the claims were inaccurate and did not respond to further inquiries. The mentioned U.S. agencies involved also declined further requests for comment, with one ignoring calls and the other unable to connect reporters to spokespeople.

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