Monitoring Desk
ISLAMABAD/CALIFORNIA: Intel Corp has announced broad employee and executive pay cuts. The announcement comes a week after the company issued a lower-than-expected sales forecast driven by the loss of market share to rivals and the PC market downturn.
The reduction could range from 5 per cent of base pay for mid-level workers to as much as 25% for Pat Gelsinger, Chief Executive. In contrast, the company’s hourly workforce’s pay could not be cut, a person familiar with the situation, who was not authorised to speak publicly, told Reuters.
Intel’s stance
Addy Burr, the Intel spokesperson, said that the “changes have been designed to impact our executive population more importantly and could help support the investments and overall workforce.”
The previous week, Intel said its profit margins were plunging as the PC (personal computer) market cooled after many years of growth during the Covid-19 pandemic.
Gelsinger also recognized that Intel has “stumbled” and lost lion market share to rivals such as Advanced Micro Devices Inc, which reported quarterly sales above Wall Street’s expectations on Tuesday.
The personwellknown with Intel’s pay cuts said that in inclusion to 5 per cent decrease for mid-level employees, vice-president-level employees could see 10% reductions, and the company’s leading executives other than the CEO could face 15% cuts.
The person said that the company had lowered its 401(k)-matching programme from 5 % to 2.5% and suspended merit increases and quarterly performance bonuses.
