© Reuters. FILE PHOTO: An Intel Corporation logo is seen on a sticker on a laptop for sale in Queens, New York, U.S., November 16, 2021. REUTERS/Andrew Kelly/File Photo
By Stephen Nellis
(Reuters) – intel corporation (NASDAQ:) said on Tuesday it had taken deep cuts to employee and executive pay, a week after the company issued a lower-than-expected sales forecast fueled by a loss of market share to rivals. and a downturn in the PC market.
The reductions will range from 5% of base salary for mid-level employees to 25% for Chief Executive Pat Gelsinger, while the company’s hourly workforce wages will not be reduced, a person familiar with the report said. matter that it was not authorized to do so. speak publicly.
Intel spokesman Addy Burr said in a statement that the “changes are designed to impact our executive population more significantly and will help support investment and the broader workforce.”
Intel said last week that its profit margins were plummeting as the PC market cools after several years of growth during the pandemic.
Gelsinger also admitted that Intel “stumbled” and lost market share to rivals such as Advanced Micro Devices (NASDAQ:) Inc, which on Tuesday reported quarterly sales that beat Wall Street expectations.
The person familiar with Intel’s pay cuts said that in addition to 5% cuts for mid-level employees, VP-level employees will see 10% cuts and the company’s top executives, except the CEO, will get cuts. of 15%.
The company also cut 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 on Intel’s overall financial performance will remain, but those bonuses have been lower in recent years as the company has lost ground to rivals, the person added.
