Intel Corporation, facing a significant decline in revenue and earnings, has taken steps to address the challenges posed by the uncertain economy and conserve its financial resources. As part of its efforts, the company is implementing a reduction in management pay across all levels. Chief Executive Officer, Pat Gelsinger, will experience a 25% decrease in his base salary, according to the company’s announcement on Tuesday, February 1st.
The executive leadership team will experience a 15% reduction in pay, senior managers will have a 10% reduction, and mid-level managers will experience a 5% decrease in compensation. These measures aim to support Intel’s ambitious turnaround plan and ensure financial stability during these challenging times. These pay cuts come in response to Intel’s recent pessimistic outlook, which foresaw one of its worst quarters in history. The company is facing increased competition and a drastic decline in demand for personal computers, leading to a decrease in profits and a depletion of cash reserves.
Despite these challenges, CEO Pat Gelsinger remains committed to investing in the company’s future and restoring its technological leadership in the highly competitive $580 billion chip industry. The reduction in management pay is an effort to balance the need for investment with the need to preserve financial stability as the company navigates its turnaround journey.