Intel Corp announced broad salary cuts for employees and executives on Tuesday, just a week since the firm had announced a lower-than-expected sale revenue forecast due to a loss of market share to competitors and a slowdown in demand in the PC market.
The cuts in pay will range from 5% of basic pay for mid-level staff to as much as 25% for Chief Executive Pat Gelsinger, according reports quoting sources familiar with the issue. The sources were not named in the reports.
According to Intel spokesperson Addy Burr, the "changes are intended to have a greater impact on our executive population and will help support the investments and overall workforce".
Last week, Intel announced that its profit margins were falling as the PC market cools after several years of growth during the pandemic.
Gelsinger also admitted that Intel has "stumbled" and lost market share to competitors such as Advanced Micro Devices Inc, which reported quarterly sales that exceeded Wall Street's expectations on Tuesday.
According to a source familiar with Intel's pay cuts, in addition to 5% reductions for mid-level employees, vice president level employees will face 10% reductions, and the company's top executives other than the CEO will face 15% reductions.
According to the person, the company has also reduced its 401(k) matching program from 5% to 2.5% and suspended merit raises and quarterly performance bonuses.
Annual performance bonuses based on Intel's overall financial performance will continue, but they will be smaller in recent years as the company has lost ground to competitors, according to the person.
(Source:www.cnbctv18.com)
The cuts in pay will range from 5% of basic pay for mid-level staff to as much as 25% for Chief Executive Pat Gelsinger, according reports quoting sources familiar with the issue. The sources were not named in the reports.
According to Intel spokesperson Addy Burr, the "changes are intended to have a greater impact on our executive population and will help support the investments and overall workforce".
Last week, Intel announced that its profit margins were falling as the PC market cools after several years of growth during the pandemic.
Gelsinger also admitted that Intel has "stumbled" and lost market share to competitors such as Advanced Micro Devices Inc, which reported quarterly sales that exceeded Wall Street's expectations on Tuesday.
According to a source familiar with Intel's pay cuts, in addition to 5% reductions for mid-level employees, vice president level employees will face 10% reductions, and the company's top executives other than the CEO will face 15% reductions.
According to the person, the company has also reduced its 401(k) matching program from 5% to 2.5% and suspended merit raises and quarterly performance bonuses.
Annual performance bonuses based on Intel's overall financial performance will continue, but they will be smaller in recent years as the company has lost ground to competitors, according to the person.
(Source:www.cnbctv18.com)
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