Intel has announced cuts to employees’ and executive’ salaries in response to a decrease in sales and market share loss to competitors.
The company’s CEO, Pat Gelsinger, will face the largest reduction of 25 percent in his base pay. The rest of the executive leadership team will experience a 15 percent decrease in their salaries, while senior managers will have a 10 percent reduction and mid-level managers will face a five percent reduction.
The cuts come after a week of disappointing sales forecasts and market share losses to competitors. Despite the reductions, Intel’s hourly workforce’s pay will not be affected. The company’s shares declined by 0.6 percent to $28.10 in New York, following a year in which the stock lost almost half its value.
“As we continue to navigate macroeconomic headwinds and work to reduce costs across the company, we’ve made several adjustments to our 2023 employee compensation and rewards programs,” Intel said in a statement.
“These changes are designed to impact our executive population more significantly and will help support the investments and overall workforce needed to accelerate our transformation and achieve our long-term strategy.”
According to reports, the company also lowered its 401(k) matching programme and suspended merit raises and performance bonuses, while annual bonuses based on financial performance will still be offered. The pay cuts aim to support the company’s investments and workforce.
