Science & technology
Chip maker Intel lays off of 1,500 employees in Costa Rica
Publish Date: Apr 09, 2014
Chip maker Intel lays off of 1,500 employees in Costa Rica
The Intel logo
  • mail
  • img
newvision

SAN JOSÉ,  - US microchip giant Intel announced Tuesday 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 set up in 1998.

"We are going to phase our our manufacturing operations in Costa Rica over the next six months. It is assembly test manufacturing. It will result in the loss of about 1,500 jobs," Intel spokesman Chuck Mulloy told AFP.

"We will continue to stay in Costa Rica with more than 1,000 employees in finance, information technology, engineering and research," Mulloy added noting there were "200 more positions in those areas that may be added in the coming year, but that has yet to be determined."

He said efficiency was behind the changes.

"We need to be more effective and efficient in our business (and) the work done in Costa Rica will be moved to assembly testing sites in China, Malaysia and Vietnam," Mulloy said.

Foreign Trade Minister Anabel Gonzalez, who has taken part in negotiations with Intel, said the company "determined that since most of its buyers and suppliers are in Asia, it is more efficient."

Intel's exports made up just over 20 percent 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 five percent of its worldwide workforce 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 percent to $9.6 billion last year.

AFP

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
$100 mn Ebola pledge from Microsoft co-founder Allen
Microsoft co-founder and philanthropist Paul Allen said he was boosting his donations to combat the Ebola outbreak in West Africa to $100 million....
Toyota shares rise on record profit report
Shares in Japanese auto giant Toyota advanced in Tokyo trade on Friday following a report it is set to book a record operating profit in the six-month period to September....
Lufthansa close to deal with IBM for IT infrastructure unit
German airline Lufthansa is close to a deal to sell its IT infrastructure unit to IBM, including an outsourcing agreement for the services, as part of a shake-up of its technology activities, it said on Wednesday....
Google launches new email service dubbed
Google has launched an email service called "Inbox" on Wednesday that will better organize emails and display information such as appointments, flight bookings and package deliveries in a more user-friendly way....
Microsoft ditching the Nokia brand
MICROSOFT is ditching the Nokia brand name from new devices, less than a year after acquiring the Finnish mobile firm...
Apple CEO meets Chinese official amid iCloud hacking row
Apple CEO Tim Cook met a senior Chinese official Wednesday, days after hackers targeted the company's iCloud service in an attack which an anti-censorship group claims originated in China....
Should diplomatic passports issued to ex-govt workers be with drawn?
Yes
No
Can't Say
follow us
subscribe to our news letter