Science & technology
Chip maker Intel lays off of 1,500 employees in Costa RicaPublish Date: Apr 09, 2014
Chip maker Intel lays off of 1,500 employees in Costa Rica
  • mail
  • img
The Intel logo
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
Microsoft to comply with China amid probe
MICROSOFT has said it seeks to comply with Chinese law, after Beijing announced an anti-monopoly investigation of the US technology giant over its business practices...
Science of brain signals opens new era for advertising
Companies in the near future will be able to test public reaction to advertisements, music and films before they are released by monitoring the brain signals of a select group as they watch a trial....
Samsung delays Tizen smartphone sales launch
Samsung Electronics said Monday it would postpone the roll-out of its new smartphone based on Tizen, a home-grown operating system aimed at breaking away from Google''s Android system....
Chinese regulators visit Microsoft offices: Dow Jones
Officials from China''s corporate regulator paid visits Monday to software giant Microsoft''s offices in four cities in the country, Dow Jones Newswires reported, citing people familiar with the matter....
Samsung delays Tizen smartphone sales launch
Samsung Electronics has said it would postpone the roll-out of its new smartphone based on Tizen, a home-grown operating system aimed at breaking away from Google's Android system....
Wikipedia blocks
WIKIPEDIA has blocked editing rights from some computers at the US House of Representatives in response to "disruptive" revisions of the online encyclopedia...
Should private schools and institutions be given tax exemption?
Yes
No
Can't Say
follow us
subscribe to our news letter