Intel Corporation took a net move following last week’s disappointing earnings report.
The chipmaker has made sweeping cuts to employee and executive pay.
Last week, Intel released a lower-than-expected sales forecast due to a loss of market share to competitors and a slump in the PC market.
The discounts range from 5% of base pay for mid-level workers to 25%, CEO Pat Gelsinger said.
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The company’s hourly wages will not be cut, said a person familiar with the matter, who was not authorized to speak publicly.
“The changes are designed to make more impact on our executive people and help support investments and the overall workforce,” Intel spokesman Addie Burr said in a statement.
Last week, Intel said its profit margins were shrinking as the PC market cooled after several years of growth during the pandemic.
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Gelsinger admitted that Intel was “stumbling” and losing market share to its rivals.
Advanced Micro Devices said Tuesday that quarterly sales beat Wall Street expectations.
In addition to the mid-level pay cuts, employees at the level of vice president will receive a 10% reduction, while senior executives other than the CEO will receive a 15% reduction.
Intel shares have worst day in 15 months.
The company also cut its 401(k) matching program from 5 percent to 2.5 percent and suspended quarterly performance bonuses, the person said.
|Ticker||Security||last one||Change||change %|
|INTC||INTEL CORP.||28.26||+0.31||+ 1.11%|
|AMD||Advanced Micro Devices Inc.||75.15||+2.70||+3.73%|
Annual performance bonuses based on Intel’s overall financial performance remain, although they are expected to be lower.
Reuters contributed to this report.