Intel said last week that its profit margins were sinking as the PC market cooled after years of growth during the pandemic.
Gelsinger also acknowledged that Intel has “stumbled” and lost market share to rivals such as Advanced Micro Devices Inc ( AMD.O ), which on Tuesday reported quarterly sales that beat Wall Street expectations. It was more.
In addition to a 5% cut for mid-level employees, vice president-level employees will see a 10% cut and the company’s top executives other than the CEO will receive a 15% cut, a person familiar with Intel’s pay cuts said. .
The company also reduced its 401(k) matching program from 5% to 2.5% and suspended merit increases and quarterly performance bonuses.
Annual performance bonuses based on Intel’s overall financial performance will remain, but those bonuses have been smaller in recent years as the company has lost ground to rivals, the person added.