Intel Corp announced on Tuesday that it had taken sweeping employee and executive pay cuts a week after the company released a lower-than-expected revenue forecast, which was caused by a loss of market share to competitors and a downturn in the PC market had done.
The cuts range from 5 percent of base pay for middle-level employees to 25 percent for Chief Executive Pat Gelsinger, while the company’s hourly wages will not be cut, said a person familiar with the matter who was not authorized to speak publicly.
intel Spokesman Addy Burr said in a statement that the “changes are designed to have a greater impact on our leaders and will help support investments and the overall workforce.”
Intel said last week that its profit margins were shrinking personal computer Market is cooling off after several years of growth during the pandemic.
Gelsinger also acknowledged that Intel “stumbled” and took market share from rivals such as Intel modern micro deviceswhich on Tuesday reported quarterly sales that beat Wall Street’s expectations.
The person familiar with Intel’s pay cuts said that in addition to the 5 percent cuts for mid-level employees, vice president-level employees will receive 10 percent cuts and the company’s top executives other than the CEO will receive 15 percent reductions are obtained.
The company also lowered its 401(k) matching program from 5 percent to 2.5 percent and suspended performance increases and quarterly performance bonuses, the person said.
Annual performance bonuses based on Intel’s overall financial performance will remain in place, but those bonuses have been lower in recent years as the company has lost ground to competitors, the person added.
© Thomson Reuters 2023
