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

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


Follow Us

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

Featured

Slideshows

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments