Intel will make massive salary cuts: CEO takes the lead in cutting salaries by 25%

With Intel’s bleak financial report data in the fourth quarter of 2022 and the unfavorable situation in the first quarter of 2023, it is likely that there will be two consecutive quarterly losses for the first time in 30 years. Intel recently embarked on a self-rescue operation. It was reported today that Intel is actively negotiating with specific brand customers to sell the previous generation of Alder Lake processors at a lower price. Among them, the Core i9 processor has a maximum price reduction of $70 to $80, a drop of about 20%.

According to DigiTimes, Intel CEO Pat Gelsinger announced that management will cut pay due to lower-than-expected revenue and profits, reduce the overall manpower expenditure, retain more cash for the company to support future plans to turn losses into profits, and at the same time cope with headwinds such as economic turmoil and weak demand in the PC market.

Pat Gelsinger will lead with a 25 percent cut in salary, a 15 percent cut across the executive leadership team, a 10 percent cut across the board for other top managers, and a 5 percent cut for middle managers. Intel pointed out that the adjusted employee compensation and reward plan for 2023 mainly affects middle and senior managers, which will help support the company’s accelerated transformation and achieve the necessary investment and human resource allocation for long-term development strategies.