Intel lays off of 1,500 employees in Costa Rica

Tags: Intel, Jobs
US microchip giant Intel announced today it was reducing its assembly and testing operations in Costa Rica and will lay off 1,500 employees.

The move was a major blow to the economy of the Central American country, where 2,700 people were employed at an assembly plant installed in 1998.

"After extensive analysis, the company concluded the best long-term solution to maximize the operational efficiency at the global level was to close its assembly and testing plant," Intel said in a statement in Spanish.

The company will still employ more than 1,000 people to work in engineering, research and development, customer support, finance, and human resources, it said.

Intel's exports made up just over 20% of Costa Rica's overall exports in 2013, though most of the material used to manufacture them had been imported.

The computer chip giant had announced in mid-January it was going to lay off 5% of its workforce worldwide in 2014, cutting around 5,400 jobs, as it tries to combat the effects of the stagnating market for personal computers.

Intel saw its net income fall 13% to $9.6 billion last year.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The US can no longer take India for granted, as Kerry’s visit shows

    Despite the feel good factor in Indo-US ties, not the least surprising given BJP’s long term support for free market and laissez-faire economy, the

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Urs Schöttli

Why cleanliness is a vital human right

I have spent the past few months in India witnessing ...

Parvez Imam

Tourism agenda with a colonial undertone

Tourism is supposed to bring in foreign exchange and provide ...

Dharmendra Khandal

Let the tiger breathe in its natural home

The world has been observing July 29 as International Tiger ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture