Intel Corporation (NASDAQ:INTC) is shutting down its assembly and test operations in Costa Rica and will be eliminating 1,500 jobs. The site closure is part of a broader plan that Intel announced earlier this year to cut spending.
“It’s being closed and consolidated into our other operations throughout the world,” said Intel spokesman Chuck Mulloy.
Intel will be moving assembly and testing from its site in Heredia over the next two quarters to existing sites in China, Malaysia, and Vietnam.
Costa Rica President Elect Luis Guillermo Solis met with Intel’s executives yesterday and they told him that the decision had nothing to do with the election of the new government on Sunday.
Intel will continue to employ over 1,000 engineers, finance, and human resources employees in Costa Rica. Intel is also going to add another 200 “high-value positions” in Costa Rica later this year.
Intel said in January that it would be reducing its global workforce of 107,000 employees by 5% this year.