Intel cuts 1,500 jobs in Costa Rica, consolidates some operations in Asia

Intel takes a step to cut 5 percent of jobs by end of fiscal year

Intel is cutting 1,500 jobs in Costa Rica as it takes steps to cut 5 percent of its workforce by the end of the fiscal year.

The job cuts, which will happen over the next two fiscal quarters, are at a site that does chip assembly and testing, said Chuck Mulloy, an Intel spokesman. The assembly and testing operations will be moved to sites in Malaysia, Vietnam and Chengdu, China, where similar functions are already performed.

"We've been clear for over a year now we have to get more efficient in the way we operate," Mulloy said.

The move will also put assembly and testing closer to PC and mobile device makers, which are now mostly in Asian countries. The ability to ship chips quicker could help accelerate the release of products from device makers and also cut costs.

Intel typically tests chips before shipping products out to PC and device makers. The Costa Rican site was also used to package chips shipped from Intel's factories in the U.S., Israel and Ireland.

The site in Costa Rica will remain operational, focusing on research and development, engineering and finance, Mulloy said. The company plans to hire 1,200 people to perform those functions.

Intel had 107,000 employees at the end of December last year. The company announced in January that it would cut 5 percent of its workforce this year.

Intel's PC chip shipments have dropped as more users move to smartphones and tablets for computing. Intel has a very small presence in the mobile-device market, and much of its manufacturing resources are still focused on PC chips. Intel has said it would ramp up manufacturing of mobile chips as it tries to capture a larger smartphone and tablet market share from ARM, whose processor designs go into most devices.

Agam Shah covers PCs, tablets, servers, chips and semiconductors for IDG News Service. Follow Agam on Twitter at @agamsh. Agam's e-mail address is agam_shah@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuesintelprocessorslayoffsComponents

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?