Intel Corp. is reducing the base pay of some managers and its executive team in an effort to reduce expenses by up to USD 10 billion per year.
The pay cuts were reported earlier this month. The change occurs shortly after Intel released its fourth-quarter financial results, which were drastically below analyst predictions. Senior managers will see a 10% reduction in base pay, while mid-level managers will see a 5% reduction. Additionally, executives’ base salaries will decrease. The base salaries of Chief Executive Officer Pat Gelsinger will be reduced by 25%, while the majority of the Intel leadership team will see reductions of 15%. According to reports, Intel is also reportedly taking a number of other cost-cutting steps in addition to the pay cuts.
The chipmaker suspends merit raises and quarterly performance bonuses in addition to reducing its 401(k) matching program from 5% to 2.5%. Annual bonuses based on Intel’s stock performance will still be given out.
Read More: Intel lowers manager and executive pay after earnings miss
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