SANTA CLARA, California: One week after Intel forecasted lower-than-expected sales caused by a loss of market share to rivals and a PC market downturn, this week Intel said it had made widespread cuts to employee and executive salaries.
Although the company's hourly workforce's pay will not be affected, the cuts will range from 5 percent of base pay for mid-level employees to 25 percent for Chief Executive Pat Gelsinger.
In a statement, Intel spokesperson Addy Burr said, "The changes are designed to impact our executive population more significantly and will help support the investments and overall workforce."
Last week, Intel said its profit margins have dropped as the PC market cools, after several years of growth during the COVID-19 pandemic.
Intel has "stumbled" and lost market share to rivals, such as Advanced Micro Devices, which reported this week that quarterly sales were above Wall Street's expectations, Gelsinger stated.
As well as 5 percent decreases for mid-level employees, vice president level employees will see 10 percent pay reductions, and the company's top executives other than the CEO will have their pay reduced by 15 percent.
Intel has also suspended merit raises and quarterly performance bonuses, and lowered its 401(k) matching program from 5 percent to 2.5 percent.
Despite being lower than rivals, annual performance bonuses based on overall financial performance will remain, officials added.