Seeking to stem losses, Intel to cut executive salaries

Robert Besser
05 Feb 2023, 02:07 GMT+10

Intel said it had made widespread cuts to employee and executive salaries
Although the company's hourly workforce's pay will not be affected, the cuts will range from 5 percent of base pay for mid-level employees to 25 percent for Chief Executive Pat Gelsinger
Last week, Intel said its profit margins have dropped as the PC market cools, after several years of growth during the COVID-19 pandemic

SANTA CLARA, California: One week after Intel forecasted lower-than-expected sales caused by a loss of market share to rivals and a PC market downturn, this week Intel said it had made widespread cuts to employee and executive salaries.

Although the company's hourly workforce's pay will not be affected, the cuts will range from 5 percent of base pay for mid-level employees to 25 percent for Chief Executive Pat Gelsinger.

In a statement, Intel spokesperson Addy Burr said, "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 have dropped as the PC market cools, after several years of growth during the COVID-19 pandemic.

Intel has "stumbled" and lost market share to rivals, such as Advanced Micro Devices, which reported this week that quarterly sales were above Wall Street's expectations, Gelsinger stated.

As well as 5 percent decreases for mid-level employees, vice president level employees will see 10 percent pay reductions, and the company's top executives other than the CEO will have their pay reduced by 15 percent.

Intel has also suspended merit raises and quarterly performance bonuses, and lowered its 401(k) matching program from 5 percent to 2.5 percent.

Despite being lower than rivals, annual performance bonuses based on overall financial performance will remain, officials added.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Greek Herald.

More Information

13 ℃

Fair in Elefsis

International Business

Section

New Jersey bank said to be first choice to buy Silicon Valley Bank

NEW YORK CITY, New York: Bloomberg News has reported that New Jersey-based Valley National Bancorp is bidding to purchase Silicon ...

Eli Lilly announces new plant in Ireland; Limerick site to employ 300

DUBLIN, Ireland: US pharmaceutical giant Eli Lilly has said it will build a $1bn medicine manufacturing site in Limerick. Lily ...

China economy remains slow as industrial profits down 4% in 2023

BEIJING, California: As the world's second-largest economy is still struggling to fully recover from the long-term effects of COVID-19, most ...

Closing of SVB Bank causes fall in deposits in small US banks

NEW YORK CITY, New York: Deposits at small U.S. banks throughout the country dropped the most since 2007 after the ...

Ford EVs will lose $3 billion pretax in 2023, says officials

DETROIT, Michigan: In a briefing for investors and analysts this week, Ford Motor Co. reported that while its electric vehicle ...

Tottering Virgin space business receives $200 million from investor

LONDON, England: Reuters has reported that struggling Virgin Orbit, owned by billionaire Richard Branson, is nearing a $200-million investment deal ...

Mediterranean

Section