Intel Corp has taken the net step following the release of a disappointing earnings report last week.
The chipmaker has made broad cuts to employee and executive pay.
Last week, Intel issued a lower-than-expected sales forecast driven by a loss of market share to rivals and a PC market downturn.
The reductions will range from 5% of base pay for mid-level employees to 25% for Chief Executive Pat Gelsinger.
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The company’s hourly workforce’s pay will not be cut, 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 impact our executive population more significantly and will help support the investments and overall 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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Gelsinger also conceded that Intel has “stumbled” and lost market share to rivals.
Advanced Micro Devices said Tuesday that quarterly sales were above Wall Street’s expectations.
In addition to the mid-level pay cuts, vice president level employees will see 10% reductions, and the company’s top executives other than the CEO will get 15% cuts.
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The company has also lowered its 401(k) matching program from 5% to 2.5% and suspended merit raises and quarterly performance bonuses, the person said.
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Annual performance bonuses based Intel’s overall financial performance will remain, although they are expected to be lower.
Reuters contributed to this report.
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