Intel cutting employees' pay, trimming CEO salary by 25% in downturn
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Intel (NASDAQ:INTC) is responding to a downturn by making companywide cuts to employee pay, with mid-level workers seeing 5% cuts, senior leaders will see reductions of 10-15% and CEO Pat Gelsinger cutting his base salary by 25%.
The hourly workforce won't see a pay cut, Reuters reported.
Intel is also cutting its 401(k) match to 2.5% from 5% and suspending merit raises and quarterly performance bonuses, according to that report.
âThese 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 said.
Intel had said last week that shareholders wouldn't see a cut in their capital returns, and that the company is committed to offering a competitive dividend.
The stock took a tumble last week after its first-quarter guidance badly missed forecasts, an outcome that shocked analysts newly concerned about the company's cash.