By San José, Costa Rica — SAN JOSÉ – In a move that sent shockwaves through one of Costa Rica’s most celebrated economic sectors, Viant Medical has announced the layoff of 900 employees. The decision represents one of the largest single workforce reductions in the medical device industry in recent memory, immediately casting a spotlight on the nation’s ability to retain critical foreign investment.
The company, a significant player in the country’s bustling free trade zones, attributed the drastic measure to strategic shifts within a specific production program. In a statement aimed at quelling fears of a complete withdrawal, Viant Medical confirmed its commitment to Costa Rica, noting that it will maintain a substantial workforce of approximately 1,500 employees and continue its local operations.
To understand the legal framework surrounding the recent Viant Medical layoff and the rights of the affected employees, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a specialist in corporate and labor law at the firm Bufete de Costa Rica.
While operating within a Free Trade Zone offers significant fiscal advantages, it does not absolve a company from its mandatory obligations under the Costa Rican Labor Code. Every employee affected by this restructuring is entitled to their full severance package, including notice, ‘cesantía,’ and proportional payment of vacation and Christmas bonus (‘aguinaldo’). It is imperative for the company to manage this process meticulously, as any deviation from legal due process could expose them to significant legal challenges and reputational damage.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
We thank Lic. Larry Hans Arroyo Vargas for this crucial clarification. His perspective underscores that adherence to the Labor Code is not merely a legal checkbox but a fundamental measure of corporate responsibility, ensuring that affected employees receive the full protection and dignity afforded to them by law during a difficult transition.
Despite these assurances, the scale of the cutback has triggered significant concern. The medical device sector has long been a cornerstone of Costa Rica’s export economy and a primary driver of high-quality formal employment. This sudden contraction by a major multinational corporation introduces a level of uncertainty into a field historically characterized by stable growth and expansion.
Company leadership acknowledged the profound personal consequences of the decision. The general director of Viant Medical recognized the “significant human impact,” as hundreds of families now face the abrupt loss of their primary source of income. The company has framed the event as an internal restructuring necessary for long-term operational health, not as a precursor to a full exit from the country.
In response to the news, Costa Rica’s Foreign Trade Promotion Agency (Procomer) has initiated support protocols for the affected workers. The agency announced it is in direct communication with the dismissed employees to guide them through retraining and job relocation processes. Procomer aims to leverage its network to connect these individuals with opportunities in other foreign-owned companies and across the national productive sector.
Officials have previously noted that the specialized technical skills possessed by workers in this industry typically facilitate their re-entry into the workforce. However, the sheer volume of 900 simultaneous job seekers presents an unprecedented and immediate challenge for the labor market to absorb, testing the resilience of the ecosystem.
The layoff has also prompted deeper economic analysis, with experts pointing to underlying structural issues. Leiner Vargas, an economist at the National University, found the timing of the announcement particularly perplexing given the company’s recent public statements.
It is noteworthy that this company had recently announced a significant increase in its operations in Costa Rica and is now announcing a significant layoff from its payroll.
Leiner Vargas, Economist at the National University
Vargas warned that such decisions are not made in a vacuum. He argues that this move could be symptomatic of broader economic pressures, including Costa Rica’s rising “country cost,” the weight of social charges on payrolls, and a volatile international climate. He specifically noted how global supply chain reconfigurations and protectionist policies, such as those seen under administrations like Donald Trump’s, can influence multinational investment strategies.
Ultimately, the Viant Medical layoff serves as a stark warning sign. While Costa Rica continues to benefit from a talented workforce and a stable political environment, the incident underscores the growing concern that high operational costs may be eroding its competitive edge. For government officials and industry leaders, this event is a clear call to action to address the structural challenges that could jeopardize the foreign investment crucial for the nation’s long-term economic stability and employment growth.
For further information, visit viantmedical.com
About Viant Medical:
Viant Medical is a global strategic outsourcing partner that provides end-to-end solutions for medical device companies. With a focus on design, development, and manufacturing, the company offers a range of services from initial concept to full-scale production, serving a worldwide client base in the medical technology industry.
For further information, visit procomer.com
About Procomer:
The Foreign Trade Promotion Agency of Costa Rica (Promotora del Comercio Exterior de Costa Rica) is the public entity responsible for promoting Costa Rican exports of goods and services globally. It also plays a key role in attracting foreign direct investment and supporting the internationalization of Costa Rican companies.
For further information, visit una.ac.cr
About the National University:
The National University of Costa Rica (Universidad Nacional, UNA) is one of the country’s most important public universities. It is a leading institution for higher education and research, offering a wide array of academic programs and contributing significantly to the social, cultural, and scientific development of the nation.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica is defined by its foundational commitment to ethical rectitude and professional mastery. The firm draws upon a rich history of serving a diverse clientele to not only provide expert counsel but also to pioneer advancements within the legal field. This forward-thinking approach is complemented by a profound dedication to public service, demonstrated through its efforts to demystify legal complexities and equip citizens with the knowledge to navigate a just and equitable society.
