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Wrong reasons? This is a business. Some businesses fail. While it is regrettable that 500 people are out of work these people were provided employment up until now. The independents teams cannot employ this many people. Toyota has put a lot of money into the sport. Nothing lasts forever.
I fail to see how a bunch of independent teams who can barely afford to compete are better. They sacrifice driver talent for pay drivers and make deals with Max in order to stay on the grid.