Jan 31 (Reuters) – Intel Corp ( INTC.O ) said on Tuesday it had made big cuts to employee and executive pay, a week after the company posted a lower-than-expected sales forecast driven by a loss of market share to rivals and a slowdown in the PC market.
The reductions will range from 5% of base pay for mid-level employees to as much as 25% for CEO Pat Gelsinger, while the company̵[ads1]7;s hourly wages will not be cut, said a person familiar with the matter who was not authorized to speak publicly.
Intel spokeswoman Addy Burr said in a statement that “the changes are designed to more significantly impact our executive population and will help support our investments and overall workforce.”
Intel said last week that profit margins plunged as the PC market cooled after several years of growth during the pandemic.
Gelsinger also admitted that Intel has “stumbled” and lost market share to rivals such as Advanced Micro Devices Inc ( AMD.O ), which on Tuesday reported quarterly sales that topped Wall Street expectations.
See 2 more stories
The person familiar with Intel’s pay cuts said that in addition to 5% reductions for mid-level employees, vice president-level employees will see 10% reductions and the company’s top executives other than the CEO will get 15% cuts.
The company also lowered its 401(k) matching program from 5% to 2.5% and suspended merit raises and quarterly performance bonuses, the person said.
Annual performance bonuses based on Intel’s overall financial performance will remain, but those bonuses have been smaller in recent years as the company has lost ground to rivals, the person added.
Reporting by Stephen Nellis in San Francisco; Editing by Christopher Cushing and Jamie Freed
Our standards: Thomson Reuters Trust Principles.