According to reports, Intel intends to reduce CEO Pat Gelsinger's base salary by 25%, and his executive leadership team will see a 15% pay cut. The move will most likely prevent mass layoffs in 2023.
Intel has announced that it will reduce employee salaries, and this latest move is likely to avoid layoffs. We have seen widespread layoffs in the tech industry over the last six months. Most major tech firms have laid off employees to cut costs, with Apple currently the only major firm that has avoided layoffs.
Also Read: Apple iPhone 13 mini 512 GB USA 2022
According to Bloomberg, Intel intends to reduce CEO Pat Gelsinger's base salary by 25%, and his executive leadership team's salaries will be reduced by 15%. Senior managers will see a 10% pay cut, while mid-level managers who receive compensation will see a 5% pay cut.
While Intel's decision may be disappointing to many, it may have been made to avoid mass layoffs. Several companies have announced layoffs in order to cut costs, but Intel has taken a different approach in order to avoid laying off thousands of employees. According to Bloomberg, the chip maker is preparing for the economic downturn and putting money aside for future plans.
Also read : ONEPLUS NORD CE 5G 6 GB RAM + 128 GB STORAGE 2022
There is no word on whether the pay cut will last until the end of 2023 or will be phased out in a few months.
In addition, the company is said to have reduced its 401(k) matching programme from 5% to 2.5%. According to the person familiar with the situation, Intel has also suspended merit raises and quarterly performance bonuses.
Also read : OnePlus Nord CE 5G 12 GB RAM + 256 GB
"We've made several adjustments to our 2023 employee compensation and rewards programmes as we continue to navigate macroeconomic headwinds and work to reduce costs across the company," Intel said in a statement. "These changes are intended to have a greater impact on our executive population and will help support the investments and overall workforce required to accelerate our transformation and achieve our long-term strategy."
Also read : Nokia 5.4 and Nokia 3.4 are now available in India: check prices and availability
The decision to cut costs is not surprising given that the company reported lower profit margins as the PC market slows and sales fall. The competition is also getting tougher, and Intel has reportedly lost some market share to rivals such as AMD, as Intel's CEO indicated to Reuters.
Also read : XIAOMI 12T PRO 12 GB RAM 256 GB ROM INDIA 2023
As previously stated, Intel is not the only technology company planning to reduce employee pay. Apple, one of the few tech companies in the world to avoid mass layoffs, also reduced pay, but only for the company's CEO, Tim Cook. According to reports, the executive agreed to take a pay cut of more than 40% in 2023.