Intel salary cut has been announced as a measure to get through the global economic crisis. Intel has indicated that it will reduce staff compensation, and this new action is expected to avert layoffs. Over the previous six months, we have seen widespread layoffs in the IT business. Most large tech firms have laid off people to save expenses, with Apple presently the only significant business that has avoided layoffs. To avoid taking drastic actions to downsize the workforce, the corporation did slash CEO Tim Cook’s remuneration by 40%. Intel is moving similarly, although personnel at all levels will be affected.
Intel to treat all employees equally
Intel intends to reduce CEO Pat Gelsinger’s basic compensation by 25%, while his executive leadership team’s salaries would be reduced by 15%. Senior managers will experience a 10% pay cut, while mid-level managers who get remuneration will suffer a 5% pay cut.
Intel salary cut announced to avert massive layoffs
While Intel’s decision may be disappointing to many, it may have been made to avert massive layoffs. Several firms have announced layoffs to cut expenses, but Intel has adopted a different route to avoid laying off thousands of employees. According to Bloomberg, the chip giant is preparing for the economic slump and putting money aside for future ambitions. There is no word on whether the Intel salary cut will last until the end of 2023 or will be phased down in a few months.
Intel has suspended merit raises
In addition, the corporation is said to have decreased its 401(k) matching scheme from 5% to 2.5%. According to the individual familiar with the situation, Intel has suspended merit raises and quarterly performance incentives. Hourly workers and employees in the company’s structure below the seventh rung will be unaffected. Hourly workers and employees in the company’s structure below the seventh rung will be unaffected.
The decision to cut expenses is not surprising given that the firm revealed reduced profit margins as the PC market slowed and sales fell. The rivalry is also getting more challenging, and Intel has lost some market share to rivals like AMD, as Intel’s CEO suggested to Reuters.
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