Intel slashes pay for some workers and executives after PC market crash: report

Intel Corp took a clear step after releasing a disappointing earnings report last week.

The chipmaker has made sweeping pay cuts to employees and executives.

Last week, Intel released a lower-than-expected sales forecast due to a loss of market share to competitors and a slowdown in the PC market.

The cuts will range from 5% of base pay for mid-level employees to 25% for general manager Pat Gelsinger.

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Intel slashes pay

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Pat Gelsinger, CEO of Intel (Fox Business Travel)

Hourly wages for the company’s workforce will not be reduced, 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 have a more meaningful impact on our executive population and will help support investments and the entire workforce. “.

Last week, Intel said its profit margins were plunging as the PC market cooled after several years of growth during the pandemic.

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Intel slashes pay

Intel logo and semiconductors (istock / iStock)

Gelsinger also acknowledged that Intel had “stumbled” and lost market share to rivals.

Advanced Micro Devices said on Tuesday that quarterly sales were above Wall Street expectations.

In addition to mid-level pay cuts, VP-level employees will see 10% cuts, and senior company executives other than the CEO will receive 15% cuts.

Intel Core i5 2500K Processor (iStock/iStock)

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Intel slashes pay

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, although they are expected to be lower.

Reuters contributed to this report.