Intel cuts management pay and fires 340 employees to preserve cash
The chipmaker said its CEO Pat Gelsinger was receiving a 25 per cent cut to his basic salary to preserve cash and initiate a recovery process
As the tech sector continues to bleed dry amid a drop in revenue and earnings, Intel on Tuesday announced it was cutting top management pay. The chipmaker said its CEO Pat Gelsinger was receiving a 25 per cent cut to his basic salary to preserve cash and initiate a recovery process.
“As we continue to navigate macroeconomic headwinds and work to reduce costs across the company, we’ve made several adjustments to our 2023 employee compensation and rewards programs,” read a statement released by the company.
Apart from Gelsinger, his executive leadership team will see their salaries decrease by 15 per cent. Meanwhile, senior managers and mid-level managers will take a 10 per cent and 5 per cent cut to their pay respectively.
"These 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," the chipmaker added.
The announcement comes a day after Intel said it was laying off 340 employees at its California campus. The company fired the workers and gave them a 60-day notice period.
Previously, Intel has already announced three rounds of firing. The California-headquartered company in December last year announced it was planning to lay off 111 employees at its Praire City Drive facility.
Afterwards, on January 11, it added that the number had risen to 176. Two days later, the chipmaker announced another round and said 167 workers were being let go permanently.
According to reports, this may not be the last of employee termination at Intel as the company plans to get rid of at least 500 workers.
Intel is not the first tech giant in recent months to go on a cost-cutting spree with non-management employees receiving the axe.
Twitter, Facebook, Alphabet, Snap, Microsoft and myriad other tech conglomerates across the world have terminated the contracts of thousands of employees.
During the pandemic, most tech companies went on a hyper-hiring spree as revenues touched record highs.
However, as soon as the pandemic eased and revenues returned to previous levels or lower, the companies panicked and started getting rid of the flab to balance the books.
(With inputs from agencies)
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