• Costa Rica Real Estate

Intel to downsize Costa Rica operations, several media sources report

June 4, 2014

The microprocessor giant Intel seems ready to halve its staff in Costa Rica, mostly those working in the company’s manufacturing line, reported several news sources Saturday.

Intel reportedly plans to move its manufacturing operation to Asia and lay off 1,500 employees, according to “well-placed” sources in the company, reported the newspaper El Financiero.

The daily La Nación reported that 1,200 jobs in the Engineering and Design departments would stay at the company’s offices in the Belén free trade zone in Heredia, and that another 200 would be hired.

Microprocessors are Costa Rica’s primary export. Over 20 percent of Costa Rica’s exports in 2013 were microprocessors, worth some $2.4 billion, according to statistics from the Foreign Trade Ministry (COMEX).

Karla Blanco, director of corporate affairs for Intel in Central America and the Caribbean, would not comment, saying, “Intel is known for its transparency and openness with the press. We’re not going to comment on rumors, and when we have something to say we will say it,” she told the newspaper.

La Nación noted that Intel CEO Brian Krzanich said in January that financial pressures would push the company to downsize.

Presidential front-runner Luis Guillermo Solís of the Citizen Action Party said Friday he planned to meet with an Intel vice president next week to discuss the possible layoffs, presumably if he wins Sunday’s runoff election against ruling party candidate Johnny Araya.

During a press conference Saturday, Solís said his administration would work to attract foreign investment in Costa Rica.

“We want Costa Rica to be a country friendly to foreign investment, … based on our [educated] workforce and conditions acceptable for investment from a financial point of view and stability in economic policies.”

Intel has been in Costa Rica since 1997 and has invested $800 million in Costa Rica between then and 2010, according to COMEX, the online daily CRHoy.com reported. Intel employs nearly 2,700 people in Costa Rica.

AFP contributed to this post.

Facebook Comments

You may be interested

Costa Rica celebrates National Parks Day
Environment and Wildlife
3789 views
Environment and Wildlife
3789 views

Costa Rica celebrates National Parks Day

The Tico Times - August 24, 2019

Entry to all Costa Rican national parks is free today for National Parks Day. The holiday, celebrated every Aug. 24…

Cat’s out of the bag: Feline evades eight prison guards
Costa Rica
73 views
Costa Rica
73 views

Cat’s out of the bag: Feline evades eight prison guards

Alejandro Zúñiga - August 23, 2019

At The Tico Times, we don't usually report on everyday crime, but this story is too purr-fect to ignore. According…

Café Britt launches ‘Coffee Lovers Experience’ coffee tour
Coffee
69 views
Coffee
69 views

Café Britt launches ‘Coffee Lovers Experience’ coffee tour

Alejandro Zúñiga - August 23, 2019

Part coffee tour, part comedy show and part classroom, Café Britt's new "Britt Coffee Lovers Experience" brings a world of…

Do NOT follow this link or you will be banned from the site!