Intel CEO Pat Gelsinger takes 25% pay cut as part of company-wide pay cut

Intel Corp said on Tuesday that it had taken pay cuts for employees and executives, a week after the company issued a lower-than-expected sales forecast due to a loss of market share to foreign investors. competitors and the PC market downturn.

The cuts will range from 5% of base salary for mid-level employees to 25% for CEO Pat Gelsinger, while the company’s hourly workforce wages will not be cut, a person familiar with the matter said. with this problem said. speak publicly.

smart Spokesperson Addy Burr said in a statement that “the changes are designed to have a more significant impact on our executive team and will help support investments and the overall workforce.”

Intel last week said its profit margins were plummeting as computer the market cooled after several years of growth during the pandemic.

Gelsinger also admitted that Intel had “stomped on the spot” and lost market share to rivals like Advanced micro-deviceon Tuesday reported quarterly sales that beat Wall Street expectations.

The person familiar with Intel’s pay cuts said that in addition to the 5% cut for mid-level employees, VP-level staff will be cut by 10% and the company’s top executives other than the CEO will be furloughed. 15% cut.

The person also said the company has downgraded its 401(k) matching program from 5% to 2.5%, and paused quarterly pay increases and performance bonuses.

The person added that annual performance bonuses based on Intel’s overall financial performance will remain, but those bonuses have been smaller in recent years as the company has lost ground against rivals. .

© Thomson Reuters 2023