Intel has revealed salary reduction to employees and executives in order to cut expenditure in the wake of slowdown in business units.
Intel last week issued a lower-than-expected sales forecast driven by a loss of market share to rivals and a PC market downturn.
The salary reductions will range from 5 percent of base pay for mid-level employees to as much as 25 percent for Chief Executive Officer Pat Gelsinger. There will be no reduction in salary to the company’s hourly workforce.
Intel spokesperson Addy Burr said in a news statement that the “changes in salary are designed to impact our executive population more significantly and will help support the investments and overall workforce.”
Intel last week said its profit margins were plunging as the PC market cools after several years of growth during the pandemic.
Pat Gelsinger also conceded that Intel has “stumbled” and lost market share to rivals such as Advanced Micro Devices (AMD).
There will be a 5 percent decrease in salary for mid-level employees, 10 percent reductions for vice president level employees, while the company’s top executives other than the CEO will get 15 percent cuts.
The company has lowered its 401(k) matching program from 5 percent to 2.5 percent and suspended merit raises and quarterly performance bonuses.
Annual performance bonuses based Intel’s overall financial performance will remain but those bonuses have been smaller in recent years as the company has lost ground to rivals.