Intel Corporation today confirmed that it has implemented a broad range of employee pay cuts, including executive compensation for managers and CEOs within the company. Among them, Intel CEO Gelsinger’s base pay will be reduced by 25 percent, and the Intel leadership team’s base pay will be reduced by 15 percent.
Dylan Patel said it was confirmed from multiple Intel employees that Intel is cutting costs significantly at the expense of its employees. The pay cut involves many people, and employees’ salaries are also affected. Quarterly salary bonuses are gone, annual bonuses are suspended, the 401k match plan (one of the employer pension plans) is halved from 5 percent to 2.5 percent, performance-based pay raises are suspended, and all employees’ base salaries are cut based on their rank.
All employees below chief engineer, i.e., levels 7 through 11, will have their salaries cut by 5%, vice presidents will be cut by 10%, the executive leadership team will be cut by 15%, and CEO Pat Gelsinger will be cut by 25%. Wages for the company’s hourly employees will not be cut.
Intel spokesman Eddie Burr said, “These changes are designed to more visibly impact our executives and will help support investment and the overall workforce.”