- Intel’s CEO and members of its executive team will take pay cuts of up to 25%, Reuters reported.
- Intel told Insider the company is working “to reduce costs across the company.”
- The move aims to free up cash for investments in line with company strategy, Intel said in a statement.
Intel’s CEO and its executive leadership team are taking pay cuts of up to 25%, as the company attempts to navigate a shaky economy and avoid further layoffs, Reuters reported.
A spokesperson for Intel told Insider the company has made “several adjustments to our 2023 employee compensation and rewards program,” part of a larger effort to “navigate macro-economic 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 spokesperson said.
Intel’s chief executive Pat Gelsinger is taking the largest cut at 25%, while other higher-ups will have their salaries reduced by 5%, 10%, or 15%, per Reuters.
The move announced Tuesday comes as Intel’s stock continues to slump, after the chip manufacturer’s value was halved in the last year, Bloomberg reported. The company’s stock has been volatile in recent weeks, after recovering somewhat from a low last fall.
It also comes as other companies opt for executive pay cuts in an effort to prevent mass layoffs. Among them is Apple CEO Tim Cook, who is taking a 40% pay reduction this year, according to documents filed with the Securities and Exchange Commission earlier this month.
Still, Intel hasn’t been totally impervious to layoffs — the tech giant warned California officials earlier this week it plans to layoff more than 340 employees from its Folsom campus, stating it is “identifying cost reductions and efficiency gains,” per local outlets.
Intel predicted one of the worst quarters in its history last week, as the PC market cools following years of growth during the pandemic, according to Bloomberg.
The pay cuts aim to free up cash within the company to be invested elsewhere — with the aim to save up to $10 billion per year by 2025 — as Intel looks to build new manufacturing plants in the US and Europe, seeking to compete with chip manufacturers in Asia, Bloomberg reported.