Intel cuts 1,500 jobs in Costa Rica as part of global restructuring

9 Apr 2014

An Intel spokesperson has announced the closure of the company’s assembly and test operation in Heredia, Costa Rica, along with the loss of 1,500 jobs.

The Heredia site, which was established in 1997, is “being closed and consolidated into our other operations throughout the world,” Reuters reported Intel spokesperson Chuck Molloy as having said.

The operation will wind down over the next two quarters, with assembly and testing facilities moved to China, Malaysia and Vietnam.

More than 1,000 engineers, finance and HR employees will remain in Costa Rica, as well as some research and development workers. Molloy also announced that 200 high-value positions will be created in Costa Rica later in the year.

The decision comes as part of Intel’s plan to reduce its global workforce by about 5pc, which was revealed in January.

A global restructuring strategy has been implemented in order to switch the company’s focus from the PC market to mobile and the ‘internet of things’. While Intel is the premium PC chipmaker in the world, Qualcomm and Samsung Electronics have established dominance in the smartphone and tablet market in which Intel needs to now compete.

However, in the total worldwide semiconductor market, Intel reigns at the top and revenues increased by 5pc in 2013 despite the weakening PC market.

Elaine Burke is the host of For Tech’s Sake, a co-production from Silicon Republic and The HeadStuff Podcast Network. She was previously the editor of Silicon Republic.