Intel slashes employee, exec pay amid PC
market downturn
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[February 01, 2023]
By Stephen Nellis
(Reuters) - Intel Corp said on Tuesday that it had made broad cuts to
employee and executive pay, a week after the company issued a
lower-than-expected sales forecast driven by a loss of market share to
rivals and a PC market downturn. |
The Intel Corporation logo is seen at a
temporary office during the World Economic Forum 2022 (WEF) in the
Alpine resort of Davos, Switzerland May 25, 2022. REUTERS/Arnd Wiegmann |
The
reductions will range from 5% of base pay for mid-level
employees to as much as 25% for Chief Executive Pat Gelsinger,
while the company's hourly workforce's pay will not be cut, said
a person familiar with the matter who was not authorized to
speak publicly.
Intel spokesperson Addy Burr said in a statement that the
"changes are designed to impact our executive population more
significantly and will help support the investments and overall
workforce."
Intel last week said its profit margins were plunging as the PC
market cools after several years of growth during the pandemic.
Gelsinger also conceded that Intel has "stumbled" and lost
market share to rivals such as Advanced Micro Devices Inc, which
on Tuesday reported quarterly sales that were above Wall
Street's expectations.
The person familiar with Intel's pay cuts said that in addition
to 5% decreases for mid-level employees, vice president level
employees will see 10% reductions and the company's top
executives other than the CEO will get 15% cuts.
The company has also lowered its 401(k) matching program from 5%
to 2.5% and suspended merit raises and quarterly performance
bonuses, the person said.
Annual performance bonuses based Intel's overall financial
performance will remain but those bonuses have been smaller in
recent years as the company has lost ground to rivals, the
person added.
(Reporting by Stephen Nellis in San Francisco; Editing by
Christopher Cushing and Jamie Freed)
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