Daily Management Review

Intel to cut managers' salaries due to downturn in computer market


A week after publishing a lower-than-anticipated sales projection due to a loss of market share and a decline in the personal computer market, U.S. giant Intel will reduce compensation for managers at various levels, according to Reuters’ sources.

Axel Bührmann
Axel Bührmann
The source claims that the company's hourly employees' compensation won't be affected by the cuts, which would range from 5% for mid-level personnel to 25% for CEO Pat Gelsinger.

The company's senior executives, aside from the CEO, will receive a 15 percent cut, the source added, and vice president-level personnel will also see a 10 percent reduction. Additionally, the corporation stopped paying quarterly performance bonuses.

The adjustments are meant to have a bigger impact on the company's executives and will assist sustain investment levels and overall employee levels, according to Intel spokesperson, who was cited by the agency.

source: reuters.com