After laying off employees, Intel has decided to cut salaries for employees, ranging from 5 to 25 per cent, with the CEO Pat Gilsinger taking a maximum 25 per cent cut on his base salary.
The pay for the executive leadership team at the chipmaker will be reduced by 15 percent. Senior managers will receive a 10 percent reduced compensation, and mid-level managers will receive a 5 per cent cut to their base salaries. However, this will not affect employees below the seventh tier and hourly wage workers.
“As we continue to navigate macroeconomic headwinds and work to reduce costs across the company, we’ve made several adjustments to our 2023 employee compensation and rewards programs,” said Intel in a statement.
“These changes are designed to impact our executive population more significantly and will help support the investments and overall workforce needed to accelerate our transformation and achieve our long-term strategy.”
Intel reduces headcount, slows down spending amid crash
The announcement comes a week after Intel shared its prediction for this quarter, which does not look good as it could be one of the worst quarters for the company since 2010. The slowdown in the computer market and tough competition have affected the profits, devouring the chip maker’s cash reserve.
Apart from layoffs and pay cuts, the chip maker has slowed down the spending on new fabrication plans to save cash. Intel plans to save $3 billion annually, with a goal to save as much as $10 billion by the end of 2025.
Pat Gilsinger is not the only CEO to take a pay cut this year. Apple CEO Tim Cook took a pay cut of more than 40 percent, taking $49 million in 2023.