Intel cuts pay, executive pay cut after disappointing earnings

Intel cuts pay, executive pay cut after disappointing earnings

Intel Corp took a significant step after the release of a disappointing earnings report last week.

The chipmaker has made a lot of cuts to employee and executive pay.

Intel issued a lower than expected sales forecast last week, driven by a loss of market share to rivals and a PC market downturn.

The reductions will range from 25% of base pay for mid-level employees to 25% for Chief Executive Pat Gelsinger.

A person who is not authorized to speak publicly said that the company's hourly workforce's pay will not be cut.

Intel said in a statement that the changes are intended to impact the executive population more significantly and will support the investments and overall workforce. Intel said last week that its profit margins were plunging as the PC market cooled after several years of growth during the Pandemic.

Gelsinger also conceded that Intel has stumbled and lost market share to rivals.

Advanced Micro Devices said Tuesday that the quarter's sales were above Wall Street's expectations.

In addition to the mid-level pay cuts, the company's top executives other than the CEO will get 15% cuts, and vice president level employees will see 10% reductions.

The company has lowered its 401 k matching program from 5% to 2.5% and suspended merit raises and quarterly performance bonuses, the person said.

Performance bonuses based on Intel's overall financial performance will remain, although they are expected to be lower.