Intel shuts its assembly and test operation in Costa Rica, cuts 1,500 jobs

[Himanshu Arora]

Intel, the world’s largest computer-chip maker, announced on Tuesday that the company will shut down its assembly and test unit in Costa Rica, and lay off around 1,500 employees, according to Bloomberg.

The move is part of a broader plan to cut 5 percent of its global workforce by the end of 2014. The company is struggling to reduce costs as the personal computer market is constantly shrinking. Moreover, it hasn't been able to build a significant business producing chips for smartphones and tablets.

"We have to be more efficient and effective," said Chuck Mulloy, an Intel spokesman.

Assembly and test work will now be consolidated to existing Intel sites in Asia -- Malaysia, Vietnam and China. The company had 2,500 employees in Costa Rica before the job cuts. The remaining 1,000 employees will now take care of finance, human resources, and some R&D work. The company may also soon add 200 more employees for "high-value positions", Mulloy said.

Intel had 107,600 employees at the end of 2013. The company runs chip-production factories at three units in the U.S., and in Ireland, Israel, and China. Its most advanced operations are in Oregon, and Costa Rica is a key destination for testing high-end microprocessors.

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https://www.techspot.com/news/56327-intel-shuts-its-assembly-and-test-operation-in-costa-rica-cuts-1500-jobs.html

 

[wastedkill]

1,500 jobs... DAAAAAAAM!
But seriously its all about keeping that what 80% profit margin? I mean only reason they reduce workforce is so they can keep on earning $10bill+ a year profit!

 

[Raoul Duke]

Are you serious, Intel is really hurting.....
Reuters: Intel posted fourth-quarter net earnings of $2.6 billion, or 51 cents a share, compared with $2.5 billion, or 48 cents a share, in the year-ago quarter. Fourth-quarter revenue was $13.8 billion, compared with $12.5 billion in the year-ago quarter, it said in a statement on Thursday. Intel forecast revenue of $12.8 billion, plus or minus $500 million, for the first quarter, which ends in March.

 

[davislane1]

1,500 jobs... DAAAAAAAM!
But seriously its all about keeping that what 80% profit margin? I mean only reason they reduce workforce is so they can keep on earning $10bill+ a year profit!

To add to Raoul's comment... Profit margin and net profit aren't figures to be considered in exclusivity. Companies like Intel have to use substantial amounts of that capital to reinvest in R&D, cover long-term liabilities, and so on. Contrary to media hype about executive pay and taxes, billion dollar corporations aren't mere privileged cash machines...Though their lobbyists try their best to realize that.

 

[wastedkill]

To add to Raoul's comment... Profit margin and net profit aren't figures to be considered in exclusivity. Companies like Intel have to use substantial amounts of that capital to reinvest in R&D, cover long-term liabilities, and so on. Contrary to media hype about executive pay and taxes, billion dollar corporations aren't mere privileged cash machines...Though their lobbyists try their best to realize that.

Compared to others like AMD, intel and Nvidia seem to be raking it in or is a few bill a year nothing compared to AMD's few hundred mill a year.

 

[Revolution 11]

AMD does not pay a dividend, Intel does. That is a substantial amount of cash leaving the company.

There will still be some jobs added in Costa Rica, but all the R&D jobs are moving to other sites. Intel will undoubtedly hire some of those 1500 jobs back in places like Oregon or Israel. Hopefully, the Costa Rica employees have other offers lined up.