Jan 31 (Reuters) – Intel Corp (INTC.O) mentioned on Tuesday that it had made broad cuts to worker and govt pay, per week after the corporate issued a lower-than-expected gross sales forecast pushed by a lack of market share to rivals and a PC market downturn.
The reductions will vary from 5% of base pay for mid-level workers to as a lot as 25% for Chief Executive Pat Gelsinger, whereas the corporate’s hourly workforce’s pay won’t be minimize, mentioned an individual acquainted with the matter who was not approved to talk publicly.
Intel spokesperson Addy Burr mentioned in a press release that the “modifications are designed to affect our govt inhabitants extra considerably and can assist help the investments and total workforce.”
Intel final week mentioned its revenue margins had been plunging because the PC market cools after a number of years of development throughout the pandemic.
Gelsinger additionally conceded that Intel has “stumbled” and misplaced market share to rivals similar to Advanced Micro Devices Inc (AMD.O), which on Tuesday reported quarterly gross sales that had been above Wall Street’s expectations.
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The particular person acquainted with Intel’s pay cuts mentioned that along with 5% decreases for mid-level workers, vice chairman degree workers will see 10% reductions and the corporate’s prime executives apart from the CEO will get 15% cuts.
The firm has additionally lowered its 401(ok) matching program from 5% to 2.5% and suspended benefit raises and quarterly efficiency bonuses, the particular person mentioned.
Annual efficiency bonuses based mostly Intel’s total monetary efficiency will stay however these bonuses have been smaller lately as the corporate has misplaced floor to rivals, the particular person added.
Reporting by Stephen Nellis in San Francisco; Editing by Christopher Cushing and Jamie Freed
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