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This [url=http://www.crhoy.com/portada-revisar-bien-intel-anunciaria-su-salida-de-costa-rica-antes-del-final-de-semestre-w9j5j7x/]CRHoy news story[/url] has yet to be verified but Intel could be about to leave Costa Rica.
As you can see from this [url=http://business.financialpost.com/2014/01/17/intel-to-reduce-global-workforce-by-5-amid-pc-sales-decline/]January article[/url], Intel was not prepared for the growth of smartphones and tablets which DO not use processors.
I wrote two relevant articles on this topic:
[url=https://www.welovecostarica.com/public/3317.cfm]Intel Is A Pillar of the Costa Rican Economy But Cracks Are Forming[/url] (October 2011)
[url=https://www.welovecostarica.com/public/3292.cfm]Big Investors Considering Costa Rica – What problems are on the horizon?[/url] (Sept 2011)
Let us hope that this does not happen because – with 5,300’ish employees (2,800 direct and 2,500 sub-contracted) – this would be [i]catastrophic[/i] for the economy.
What do you think?
I don’t think I’m ready to emulate Chicken Little yet.
Corporations do what corporations do. Their only goal is to make the best profit that they can.If you want to talk about corrupt bankers, politicians and corporations the good old USA is a better target.
According to La Nacion (newspaper) 4/5/14 Intel will layoff 9,900 employees worldwide and 1,500 of those are in Costa Rica.
The other bad news is the loan restructure Costa Rica did for 1 Billion dollars @ 7% instead of 5% and all of this because the 35 million paid to OAS for the failed contract for the road to San Ramon, Las Crucitas and La Trocha besides the disagreements with Nicaragua.
Costa Rica has some serious problems and the new President is going to inherit some big headaches.
It is now fact…. Intel will close their chip manufacturing operations in Costa Rica and move them to Vietnam…
1. [url=http://www.nacion.com/economia/empresarial/Intel-cambios-operacion-Costa-Rica_0_1406659372.html]Intel transforma operaciones: manufactura va para Asia[/url]
2. [url=http://www.crhoy.com/intel-cerraria-manufactura-de-chips-dejaria-abierto-centro-de-servicios-v1l7x/]Intel cerraría manufactura de chips, dejaría abierto centro de servicios[/url]
Engineering, design and services operations will remain but more than half of all Intel employees in Costa Rica (1,500) are to be fired.
That’s the bad news…
The good news?
It could have been worse….
[quote=”Scott”]It is now fact…. Intel will close their chip manufacturing operations in Costa Rica and move them to Vietnam…
1. [url=http://www.nacion.com/economia/empresarial/Intel-cambios-operacion-Costa-Rica_0_1406659372.html]Intel transforma operaciones: manufactura va para Asia[/url]
2. [url=http://www.crhoy.com/intel-cerraria-manufactura-de-chips-dejaria-abierto-centro-de-servicios-v1l7x/]Intel cerraría manufactura de chips, dejaría abierto centro de servicios[/url]
Engineering, design and services operations will remain but more than half of all Intel employees in Costa Rica (1,500) are to be fired.
That’s the bad news…
The good news?
It could have been worse….
[/quote]
I wouldn’t consider it good news.Lets use a Tico term.” Poco a poco”.
They got rid of the worst ones first. The rest(less bad-still bad) will go as soon as they get settled in Nam. HP and others will follow the leader. Maybe they’ll rethink the law about firing useless idiots here and quit penalizing employers 😉
jajajajaja NUNCA ![youtube]https://www.youtube.com/watch?v=wNJ8QgAGJ78#t=60[/youtube]
No matter how you spin it the departure of Intel is NOTHING but bad news for Costa Rica. 1500 professional or semi professional technicians on the street looking for work is a problem. I think the whole facility will be gone in a few years and that’s 4% of GDP. I’m not in the chicken little group but I see some serious consecuences in the near future. Blame savage capitalism (Asian slave labor) Intel’s lack of vision or the Costa Rican government’t insane fiscal policies if you will. Also maybe Intel is worried about the future plans of the PAC. Bad economic times will deteriorate the quality of life FOR ALL in CR, even for EXPATS
I look at corporations as soulless entities as profit is their pure objective regardless of what anyone states.
its always about money pure and simple.
The reason they originally came to costa rica is simply tied to profit.. and the balance to maintain in deciding if costa rica is profitable I am sure was always at the annual strategy meetings.. 🙂
Sadly Costa Rica has a history of changing things midstream with regards to deals made.
I say .. good for Intel.. and maybe this shake up will make the people here that actually have any affect in these things take notice and make costa rica inviting investment instead of taking it for granted. with these constant inflated tourist numbers that I.C.T. produces just to cover their jobs..
I remember all the perks they used to offer for people to relocate here.. geeezz it was not that long ago
does anyone remember those.
you can import a car tax free every certain number of years..
I used to have a physical business here in the tourism market and we were able to import items like beds, electronics, appliances.. etc.. all duty free once you qualified.
the good ole days 🙂
now they want to extract more and more taxes.. like all good incompetent governments do.. all in the name of whatever..:)
they learn from the best..
[quote=”Scott”]It is now fact…. Intel will close their chip manufacturing operations in Costa Rica and move them to Vietnam…
1. [url=http://www.nacion.com/economia/empresarial/Intel-cambios-operacion-Costa-Rica_0_1406659372.html]Intel transforma operaciones: manufactura va para Asia[/url]
2. [url=http://www.crhoy.com/intel-cerraria-manufactura-de-chips-dejaria-abierto-centro-de-servicios-v1l7x/]Intel cerraría manufactura de chips, dejaría abierto centro de servicios[/url]
Engineering, design and services operations will remain but more than half of all Intel employees in Costa Rica (1,500) are to be fired.
That’s the bad news…
The good news?
It could have been worse….
[/quote]Scott
you were spot on with your assesments
[quote=”Scott”]This [url=http://www.crhoy.com/portada-revisar-bien-intel-anunciaria-su-salida-de-costa-rica-antes-del-final-de-semestre-w9j5j7x/]CRHoy news story[/url] has yet to be verified but Intel could be about to leave Costa Rica.
As you can see from this [url=http://business.financialpost.com/2014/01/17/intel-to-reduce-global-workforce-by-5-amid-pc-sales-decline/]January article[/url], Intel was not prepared for the growth of smartphones and tablets which DO not use processors.
I wrote two relevant articles on this topic:
[url=https://www.welovecostarica.com/public/3317.cfm]Intel Is A Pillar of the Costa Rican Economy But Cracks Are Forming[/url] (October 2011)
[url=https://www.welovecostarica.com/public/3292.cfm]Big Investors Considering Costa Rica – What problems are on the horizon?[/url] (Sept 2011)
Let us hope that this does not happen because – with 5,300’ish employees (2,800 direct and 2,500 sub-contracted) – this would be [i]catastrophic[/i] for the economy.
What do you think?[/quote]
Doug
I owned and operated a brick and mortar business here for 8 years and had 30 to 40 fulltime salaried caja paying employees..
my experience with costa rica and the way the treat small business here prompt me to sell and vow to NEVER ever hire a tico here as an employee EVER again..
I cannot be the only one to experience this..
costa rica does [b]NOT[/b] support small medium business here at all and they more or less do not favor large ones either its just they have more money to get what they want done.
I love living and raising a family here BUT will never do business here again.
I now operate with 15 fulltime employee’s BUT they are in the Philipines :D:D:D all monies generated are generated OFFSHORE by my Hong Kong Corporation and all I get is a small measly salary 8)8)8)8)8) so neither the big bad U.S. OR Costa Rica gets any of my money..
if any business person wants to see what a pro business government looks like go and visit hong Kong..
I use these guys as virtual office space.. http://hkcommons.com/
only challenge is you need to physically go at least 1 time to open your bank accounts in person.
Long Flight!!! 🙂
[quote=”Doug Ward”][quote=”Scott”]It is now fact…. Intel will close their chip manufacturing operations in Costa Rica and move them to Vietnam…
1. [url=http://www.nacion.com/economia/empresarial/Intel-cambios-operacion-Costa-Rica_0_1406659372.html]Intel transforma operaciones: manufactura va para Asia[/url]
2. [url=http://www.crhoy.com/intel-cerraria-manufactura-de-chips-dejaria-abierto-centro-de-servicios-v1l7x/]Intel cerraría manufactura de chips, dejaría abierto centro de servicios[/url]
Engineering, design and services operations will remain but more than half of all Intel employees in Costa Rica (1,500) are to be fired.
That’s the bad news…
The good news?
It could have been worse….
[/quote]
I wouldn’t consider it good news.Lets use a Tico term.” Poco a poco”.
They got rid of the worst ones first. The rest(less bad-still bad) will go as soon as they get settled in Nam. HP and others will follow the leader. Maybe they’ll rethink the law about firing useless idiots here and quit penalizing employers 😉
jajajajaja NUNCA ![youtube]https://www.youtube.com/watch?v=wNJ8QgAGJ78#t=60[/youtube]
[/quote]Intel Corp. should be boycotted and they should apologize to all USA citizens for moving to Saigon City.
Vietnam War Casualty StatisticsTotal number of U.S. soldiers deployed to Vietnam
536,100
Total number of U.S. casualties in the Vietnam War
58,220
Total number of U.S. soldiers wounded in the Vietnam War
303,644
Total military casualties from both sides
1.475 million
Total wounded from both sides
2.094 million
Total civilian casualties from both sides
4 million
Age of the oldest man killed during the Vietnam War
62
Total number of KIA’s soldiers who were less than 20 years old 11,465Sweikert is 100% on this one
[quote=”sweikert925″][quote=”residencial”]Total number of U.S. casualties in the Vietnam War…58,220 …Total military casualties from both sides 1.475 million[/quote]
Which, by my arithmetic means that more 1.4 million military casualties were Vietnamese.If you want to continue fighting the Vietnamese then be my guest, but it was the US that invaded their country, not the other way around.
If the US can do business with Japan – which actually DID attack us – then why shouldn’t Intel do business with Vietnam?[/quote]
on another BAD news for this week is that Bank of America is closing it’s service center in CR.
POOF!!!! another 1,500 jobs are gone this time to India.
[quote=”aguirrewar”]on another BAD news for this week is that Bank of America is closing it’s service center in CR.
POOF!!!! another 1,500 jobs are gone this time to India.
[/quote]can’t really blame them. we shall see if other companies follow suit..
it is a world wide economic collapse, slow and grinding. It had to effect CR eventually in bigger ways. More to come.
On the 21st February 2013 I wrote about ‘[url=https://www.welovecostarica.com/public/4056.cfm]Businesses Leaving Costa Rica. Is this the canary in the coal mine?[/url]’, I concluded with the following:
“Having said that, with the recent news of these different companies leaving Costa Rica, the warning bells are ringing and now is the time for the government to refocus their efforts on the education and training of our young people for both foreign and domestic employers, to try and cut costs – especially energy costs – and re-evaluate how we can remain competitive as an offshore destination or, we will see more companies leaving this rich coast… “
That was in February of last year…
Costa Rica is certainly NOT immune to global economic conditions – we benefitted from those conditions for many years when U.S. companies moved here to save money – but apart from electricity costs rising [i]significantly[/i] during that time, has anything improved at all?
Have we seen any improvements that would make Costa Rica an attractive offshoring location or, is that cycle now over?
Would love to hear your opinion…
Scott
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