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Intel Slashes Salaries Across Company, After $900M Net Loss

Intel will slash the salaries of workers across its entire company, from the CEO down.

The chipmaker announced “several adjustments to our 2023 employee compensation and rewards programs” in a statement, with CEO Pat Gelsinger leading the charge by copping a 25 per cent cut to his base salary.

Gelsinger’s executive leadership team will see a 15 per cent cut, senior managers 10 per cent, and mid-level managers a 5 per cent cut. Hourly workers and “employees below the seventh tier” won’t be impacted.

Intel said the cuts were necessary, “as we continue to navigate macroeconomic headwinds and work to reduce costs across the company”.

“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 cost-cutting follows one of the worst quarters in the company’s history, with a a 32 per cent year-over-year decline in revenue, and a net loss of A$906 million for the December quarter.

The pain has continued into the current quarter, with Intel forecasting first-quarter sales of between A$14.7 billion and A$16.2 billion, a far cry from Wall Street estimates of $19.6 billion.

“Our results and our Q1 guidance are below what we expect of ourselves,” Gelsinger admitted.

 



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