slowing PC market
Jan 31 (Reuters) – Intel Corp (INTC.O) said on Tuesday it had made sweeping pay cuts for employees and executives, a week after the company released lower-than-expected sales guidance due to a loss of market share to rivals and a slowdown in the PC market.
The cuts will range from 5% of base pay for mid-level employees to 25% for chief executive Pat Gelsinger, while hourly pay for the company’s workforce will not be reduced, a source said. a person close to the case who was not authorized to speak publicly.
Intel spokesperson Addy Burr said in a statement that “the changes are designed to have a more meaningful impact on our executive population and will help support investments and the entire workforce.
“.Intel said last week its profit margins were plunging as the PC market cooled after several years of growth during the pandemic.
Gelsinger also admitted that Intel had “stumbled” and lost market share to rivals such as Advanced Micro Devices Inc (AMD.O), which on Tuesday reported quarterly sales that beat Wall Street expectations.
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The person familiar with Intel’s pay cuts said that in addition to the 5% cuts for mid-level employees, VP-level employees will see 10% cuts, and the company’s top executives other than the CEO will get 15% off.
The company also lowered its 401(k) matching program from 5% to 2.5% and suspended merit increases 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.Reporting by Stephen Nellis in San Francisco; Editing by Christopher Cushing and Jamie Freed
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