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Intel Corp took the net move after releasing a disappointing earnings report last week.
The chipmaker has slashed employee and managerial salaries.
Last week, Intel issued a lower-than-expected revenue forecast due to a loss of market share to competitors and a downturn in the PC market.
The cuts range from 5% of base pay for middle-level employees to 25% for Chief Executive Pat Gelsinger.
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Intel CEO Pat Gelsinger (Fox Business Travel)
The company’s hourly wage will not be cut, said a person familiar with the matter, who was not authorized to speak publicly.
Intel spokesman Addy Burr said in a statement that the “changes are designed to have a greater impact on our leaders and will help support investments and the overall workforce.”
Last week, Intel said its profit margins fell as the PC market cooled after several years of growth during the pandemic.
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Intel logo and semiconductors (istock / iStock)
Gelsinger also acknowledged that Intel “stumbled” and lost market share to rivals.
Advanced Micro Devices announced on Tuesday that quarterly sales beat Wall Street expectations.
In addition to the mid-level pay cuts, employees at the VP level will be cut by 10% and the top executives of the company, excluding the CEO, will be cut by 15%.
Intel Processor Core i5 2500K (iStock / iStock)
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The company also lowered its 401(k) matching program from 5% to 2.5% and suspended performance increases and quarterly performance bonuses, the person said.
| ticker | security | Last | To change | To change % |
|---|---|---|---|---|
| INTC | INTEL CORP. | 28.26 | +0.31 | +1.11% |
| AMD | ADVANCED MICRO DEVICES INC. | 75.15 | +2.70 | +3.73% |
Annual performance awards based on Intel’s overall financial performance remain in place, although they are expected to be lower.
Portal contributed to this report.