Jan. 31 (Reuters) – Intel Corp (INTC.O) It said on Tuesday it had made sweeping pay cuts to employees and executives, a week after the company issued lower-than-expected sales forecasts driven by a loss of market share to competitors and a slumping PC market.
The cuts will range from 5% of the base salary for mid-level employees to 25% for CEO Pat Gelsinger, while the company’s workforce will not be cut, said a person familiar with the matter who was not authorized to do so. speak out.
“The changes are designed to further impact our executive team and will help support investments and the workforce in general,” Intel spokeswoman Adi Boer said in a statement.
Intel said last week that its profit margins were slipping as the PC market slumps after several years of growth during the pandemic.
Gelsinger also acknowledged that Intel had “flooded” and lost market share to competitors such as Advanced Micro Devices Inc. (AMD.O)which on Tuesday reported quarterly sales that beat Wall Street expectations.
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The person familiar with Intel’s salary cuts said that in addition to the 5% cuts for mid-level employees, VP-level employees will see 10% cuts and the company’s top executives other than the CEO will take 15% cuts.
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.
The person added that annual performance bonuses based on Intel’s overall financial performance will still exist, but that these bonuses have been lower in recent years as the company has lost ground to competitors.
Additional reporting by Stephen Nelis in San Francisco; Editing by Christopher Cushing and Jamie Fried
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