Tesla Motors and Elon Musk played a part in mass downsizing of Panasonic in China.
Since Tesla Motors Inc. launched its first Model S in 2012, it has witnessed incredible growth in the world, but sometimes, its work has not always delivered positive impacts into the lives of customers. Recently, 1,300 workers were laid off from their respective jobs, which were citizens of Beijing, China, while Elon Musk’s company persuades Panasonic to follow the money in Li-ion tech.
On Thursday, the Japanese battery-maker acknowledges that it will stop making power cell at the factory this month because it actually wants to focus with higher margins on Li-ion products, just like the cells found in Tesla Model S and other EVs. It manufactures cells for digital cameras and feature phones, but its demand it gradually declining.
Nobody has the idea about the battery business or plant losing money for Panasonic. According to the statement on the by Yayoi Watanabe, “The global market for these products has been shrinking.” This indicates that it might want to shift the focus from that type of production.
The company was quick to contend that the termination was not due to the current economic crisis in China. The act had many things to with way in which the international battery business is progressing.
This not the first time that smart car maker and Elon Musk played their roll in firing someone and it is also expected that they will keep playing that role in future too. Panasonic’s operations in Beijing could not keep up with the pace anymore. If people, such as Elon Musk, will not change their approach, many people will be jobless in the upcoming years and it is very difficult for any other company to appoint hundreds of people at once.
The Gigafactory will be the biggest battery producer in the world, as it will catch up with the business from all the plants around the world and will supply products, such as home energy storage.
As the world is changing and evolving constantly, current technologies and many jobs are going to be rendered useless. This is the reason that is killing the job opportunities, and it is expected that there would be a chance of more unemployment in the future. The only solution to overcome this situation is a negative income tax.
Job opportunities in any economy rely on the employment in private and public sector. Corporate giants provide such jobs to people, which might have a negative impact upon individual and economy followed by such mass firing/downsizing.
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