JAPAN — The Japanese government on Friday fired its largest private sector job creator, after it said it would be unable to pay workers on an emergency strike.
The Ministry of Economy, Trade and Industry, the ministry responsible for the countrys finances, said in a statement that it would take disciplinary action against the company, Koei Tecmo Inc., over the shutdown of its production and supply chain.
On Friday, the government said that Koeitai, a major software maker based in Tokyo, would not be able to pay its workers for the first three weeks of the shutdown.
The ministry said that the decision was made on the basis of the situation in the industry, which is facing a prolonged slump in demand due to the ongoing shutdown.
“In the past few weeks, KotoTek’s production and supplies have decreased to the point where we are unable to meet our demand for the coming period,” it said.
Koeitay said it was taking measures to prepare its factories for the strike, including by outsourcing production to other companies.
“We will be taking disciplinary action, but this time, it will be different, as we are not able to offer any compensation for workers,” the company said.
The company is one of the world’s largest makers of virtual reality headsets.
KoeiTek is one the worlds largest makers for virtual reality devices.
While it is a company that makes virtual reality products, it is also known for its robotics and artificial intelligence research.
The Koeiatech robotics division has been working on a robot called ‘Dora’ which could play virtual reality games.