Intel Cuts Some Workers, Pays Execs After PC Market Slumps: Report

Intel Corp. made the net move after a disappointing earnings report last week.

The chip maker has made sweeping pay cuts to employees and executives.

Last week, Intel released Lower than expected sales forecast Driven by losing market share to competitors and declining PC market.

The cuts will range from 5% of base salary for mid-level employees to 25% for CEO Pat Gelsinger.

For chipmakers, the transition from lack to damping intensity

Pat Gelsinger, CEO, Intel Corporation (Fox Business Travel)

A person familiar with the matter who was not authorized to speak publicly said the salaries of the company’s hourly workers will not be cut.

“The changes are designed to impact our executive team more and will help support investments and the workforce in general,” Intel spokeswoman Adi Boer said in a statement.

Last week, Intel said its profit margins were falling with a decline Cooling the PC market After several years of growth during the pandemic.

Intel to cut thousands of jobs as PC demand slows: Report

Intel semiconductor logo (iStock/iStock)

Gelsinger also acknowledged that Intel had “flooded” and lost market share to competitors.

advanced micro devices He said on Tuesday that quarterly sales were higher than Wall Street expected.

In addition to mid-level pay cuts, VP-level employees will see 10% cuts, and the company’s top executives other than the CEO will take 15% cuts.

Intel Core i5 2500K processor (iStock/iStock)

Worst day for Intel stock in 15 months

The person said the company also reduced its 401(k) matching program from 5% to 2.5% and suspended merit increases and quarterly performance bonuses.

Annual performance bonuses based on Intel’s overall financial performance will still be in place, although they are expected to be lower.

Reuters contributed to this report.