Intel shutting down Costa Rican facility, laying off 1.5K workers


Intel's (INTC) Costa Rican chip assembly/test facility will be shut down and consolidated into the company's other global operations. Intel will continue employing 1K workers within the country.

Intel, which had 108K employees at the end of 2013, announced plans to lay off 5K workers in January. It has also stalled the opening of a cutting-edge Arizona fab (meant to produce 14nm CPUs) due to soft PC demand.

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Comments (17)
  • Ajayyy
    , contributor
    Comments (325) | Send Message
     
    How is everyone trading INTC into the earnings?
    In past the most profitable strategy has been to sell just before earnings after the ramp up leading into it.
    Are you swinging it or staying long? I already sold half my position and trying to decide what to do with the remaining.
    8 Apr 2014, 04:42 PM Reply Like
  • Grant Payne
    , contributor
    Comments (337) | Send Message
     
    Yeah I have like 1000 in the shares for a long long term hold for the dividend and possible mobile story. However, I sold 3/4 of the calls. INTC is at the top of its recent range and any slight disappointment will probably see it correct down to ~25.
    It's exactly what happened last quarter.
    Then again if they surprise to the upside they might keep this 27 spot or hit 28.

     

    But how likely is an upside surprise given their very tepid growth? PC's would have to have rebounded significantly.
    I just don't think anything has happened yet significant enough to move the needle that dramatically.
    I might buy puts a day or so before earnings, betting on a meet or miss is getting exceedingly cheap and the risk reward is there.
    8 Apr 2014, 05:00 PM Reply Like
  • Grant Payne
    , contributor
    Comments (337) | Send Message
     
    http://seekingalpha.co...

     

    Russ Fischer paints a more optimistic picture for INTC sales in the PC space. I think it may be true but I'd weigh it against INTC's need for real mobile growth in its tendency to fall short of expectations as of late.
    Even if it is true it's more likely to reflect in next quarters rather than this one, I'd guess.
    8 Apr 2014, 05:03 PM Reply Like
  • george1234
    , contributor
    Comment (1) | Send Message
     
    Hello, Intel has been in the past behind the 8 ball, but this yr they have the new atom chip and are head of everyone else. They are consolidating. They will be over there prediction by the end of the year. Please read who they just bought and why they are acctually ahead of the game. I am sorry you sold alot of your stocks if you watch at the end of the year you will be sick when you see the money you would have made if you would have kept them. I read on INTC every day on this site and there is no neg words except your comments and the other guy. Not sure where you are reading but you need to read what ford and street have to say. BUY BUY!
    8 Apr 2014, 10:03 PM Reply Like
  • maybenot
    , contributor
    Comments (6623) | Send Message
     
    interesting. does not seem like the INTC of recent past years.

     

    they used to always be hiring.

     

    glad I sold INTC awhile back.

     

    i'm sure it is the right move for the company. but they sure do seem to be wandering around. sure seems that way.
    8 Apr 2014, 04:43 PM Reply Like
  • Thomas Phillips
    , contributor
    Comments (65) | Send Message
     
    Lots of cuts going on at Intel right now. Some surprising percentages of some groups which would have been considered key engineering groups in the past.
    8 Apr 2014, 04:56 PM Reply Like
  • rasanders22
    , contributor
    Comments (612) | Send Message
     
    There is a saying in the semi-conductor industry. The closer you are to the wafer, the more secure your job.
    8 Apr 2014, 11:45 PM Reply Like
  • billcharlesdixon
    , contributor
    Comments (2015) | Send Message
     
    Good. Cut away the fat. The sad thing of course are the unemployed, but at least they are not fellow citizens.

     

    I guess I will keep the calls, due in January of next year. Of course, it is riskier, but that is okay....I hope!
    8 Apr 2014, 06:02 PM Reply Like
  • billcharlesdixon
    , contributor
    Comments (2015) | Send Message
     
    Good. Cut away the fat. The sad thing of course are the unemployed, but at least they are not fellow citizens.

     

    I guess I will keep the calls, due in January of next year. Of course, it is riskier, but that is okay....I hope!
    8 Apr 2014, 06:02 PM Reply Like
  • desicon
    , contributor
    Comments (580) | Send Message
     
    I am very suspicious of Intel. I think it is being setup for a big fall. I have sold all my position.

     

    Three months back analyst sentiments were bad but prospect were good, stock did not move. Today, analyst sentiments are good but execution has proven to be difficult , but stock is up.
    8 Apr 2014, 06:34 PM Reply Like
  • Ajayyy
    , contributor
    Comments (325) | Send Message
     
    We really don't know anything about how good or bad the execution has been by Intel in last 3. We will find that out next week.
    8 Apr 2014, 08:06 PM Reply Like
  • Mike Bruzzone
    , contributor
    Comments (468) | Send Message
     
    Puerto Rico is a United States Territory.

     

    mb
    8 Apr 2014, 08:03 PM Reply Like
  • maybenot
    , contributor
    Comments (6623) | Send Message
     
    and Costa Rica is not.
    8 Apr 2014, 08:53 PM Reply Like
  • crabbyjim
    , contributor
    Comments (32) | Send Message
     
    It is in Costa Rica where the jobs are being cut, not Puerto Rico. U.S. citizens or not, they need their jobs and I doubt that they consider themselves to be "fat" to be sacrificed for better quarterly earnings. I too am a long term INTC shareholder and I have missed many much better opportunities by holding on. Hopefully all of optimism displayed by some here will be reflected in a better share price in the not too distant future.
    8 Apr 2014, 09:00 PM Reply Like
  • rasanders22
    , contributor
    Comments (612) | Send Message
     
    Its sad to hear about anyone loosing their job, regardless of what country they live in. I would hate to loose my job because a company is tyring to cut costs. But that is a part of life. That is why you are supposed to work hard and be such a valuable member of the work force, they want to keep you. And if that fails, well, thats why you are supposed to save your money.
    8 Apr 2014, 11:56 PM Reply Like
  • Ajayyy
    , contributor
    Comments (325) | Send Message
     
    Lets hope that the people losing their jobs put their savings into the market to make a living on and keep this party going.
    15 Apr 2014, 05:29 PM Reply Like
  • Qniform
    , contributor
    Comments (4494) | Send Message
     
    There has been a round of cuts worldwide people. Across the board it's 5% in addition to attrition, and it is higher level targeted - grade 7 and up. Managers say that another round is quite possible in the September timeframe. BUT, Intel is very good about helping with internal and external placement of employees, with 6+ months of salary and HR support for any transition.
    9 Apr 2014, 05:32 PM Reply Like
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