After reporting a dismal fourth quarter, U.S. chipmaker Intel announced that company executives will have periodical base-pay reductions, as well as cutbacks in perks worth tens of millions of dollars for lower-level personnel.
The corporation experienced a net loss of $644 million for the fourth quarter of 2022 and provided a bleak outlook for 2023, which included a 40% year-over-year fall in sales in the first quarter of this year.
Executive pay cuts will range from CEO Pat Gelsinger—with a base salary cut of 25% or about $312k—to mid-level managers, too.
According to a report from CNBC, executive team members will take a 15% pay cut, while senior and mid-level managers will take pay cuts from 5% to 10%.
What’s more, merit-based compensation and quarterly bonuses will be postponed, and 401(k) matching will drop from 5% to 2.5% for all employees.
In a statement, the company said, “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.”
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