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

  1. 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.

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  2. wastedkill

    wastedkill TS Evangelist Posts: 1,373   +310

    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!
  3. Raoul Duke

    Raoul Duke TS Guru Posts: 860   +307

    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.
    wastedkill likes this.
  4. davislane1

    davislane1 TS Evangelist Posts: 3,370   +2,162

    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.
  5. wastedkill

    wastedkill TS Evangelist Posts: 1,373   +310

    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.
  6. Revolution 11

    Revolution 11 TS Enthusiast Posts: 40

    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.

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