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Last month, Intel finally finished its planned layoffs in Costa Rica hoping to move its workload to Vietnam QCostaRica reports. The layoffs which were announced last April were carried out gradually from June until the end of 2014 and went smoothly according to Timothy Scott manager of customer relations at Intel.

Scott claims that all 1,500 employees who lost their jobs last year received training and support from Intel through job fairs and conventions hosted by other companies, helping to aid their transition. However, of the employees who lost their jobs due to this latest batch of layoffs, only 100 have continued working for Intel in their new project.

Intel opened a new Megalab in Heredia, Costa Rica in December which hired 250 new staff including the 100 previous employees. Despite including this huge influx of new jobs, Intel in Costa Rica ends the year with almost half of the staff they had employed back in April when they made the announcement, reducing staff from 2800 to 1550.

The layoffs were due to the closing of a processing plant and the disconnection of machinery which was donated by other companies in Costa Rica as production now moves to Vietnam. Moving business to Vietnam is seen as lucrative these days as Virgin named Ho Chi Minh City number 1 for business start ups last year quoting low costs as a primary reason, with positions such as in admin or coding hiring for just $500-$1500 a month.

Experts however did warn of a tendency in Vietnam of using “short-cuts” to get ahead in business giving stockholders a reason to be concerned with the quality of future product. Though they did also credit the Vietnamese with a “fierce work ethic.”

This news hits the mainstream following other recent news that Intel has chosen to work with controversial projects in a $300million bid to increase diversity in tech. Projects supported include the International Game Developers Association, which encouraged the blacklisting of certain people from the industry, and Feminist Frequency a project critiquing culture from a feminist standpoint, a founder of which has recently mocked French satirical magazine Charlie Hebdo in the wake of the shooting at Paris headquarters killing 12.

This controversial pairing has caused many to sell their stock with Intel notably Genna Bain CEO and Managing Director of YouTube channel Cynical Brit, quoting “diversity” in her Twitter comment.


Georgina Young

Contributor

British girl, currently in Japan. Surviving on a diet of retro games. Worshiping the god that is the Sega Megadrive. I like Nintendo.



  • Audie Bakerson

    I bet everyone in Costa Rica is glad Intel spent millions on people that include a terrorist supporting anti-Semite

  • Grey

    Diversity dollars already at work. They’ll just keep popping processing operations to the next lowest wage area, keeping a few stragglers from the previous location, till they have underpaid workers from all around the world.

  • Notagoodname

    “has caused many”

    I’m pro-GG and all, but citation needed? I have only seen a $1 decrease, which was well within market fluctuations. And granted, Genna did sell her stock, but again, one =/= many.

  • Notagoodname

    Good for them, and good for those countries. Getting companies to employ workers from those countries is how poor countries can advance and get richer.

    The alternative to being “underpaid,” is to just have all those people unemployed or in a drug trade.

  • Tanis

    That is the state of sweatshops and the like. It’s not nice and well paid but it beats the other jobs available in numerous places..

  • Notagoodname

    EXACTLY. It pisses me off when people complain about sweatshops but then fail to explain how to employ billions of people without education in countries without any infrastructure.

    It’s often so bad that when the companies decide to pay the workers above the market average, the people of that place literally form a mafia based around finding employment at that company.

  • Pablo Hernández

    This is quite common at least in south america, we have a term for these companies: “capitales golondrinas” (“swallow capital”). They come in spring (with lots of tax exemptions) and leave before winter when the weather’s colder and risk rises.
    It’s always spring somewhere else.

  • Typical

    I wonder how the socialist “don’t exploit the workers!” partners they just teamed with feel about this.

  • Bruce

    All in the name of equality.