Intel Cutting Prices and Pay
upstart writes:
New intel from Intel says that some employees at the company will be taking a pay cut-even the CEO.
Layoffs are ravaging the tech industry due to the wildly abstract threat posed by "the economy," but Intel is taking a different approach. Instead of laying off thousands of its workforce, the company has seemingly decided to make sweeping pay cuts from 5% to 25%.
Dylan Patel first reported on the pay cuts in his newsletter SemiAnalysis yesterday. Patel says that multiple employees have relayed to him that Intel is looking to cut costs to meet its quarterly dividend, and some employees are the ones footing the bill. According to a source within Intel, employees below and including Principal Engineer will be receiving a 5% pay cut with the exception of hourly and junior-level employees, who will not be affected by the cuts. Glassdoor and a Google Jobs posting reveal that Principal Engineers can make upwards of $170,000 at a minimum.
Likewise, VPs are taking a 10% hit, the executive leadership team is taking a 15% cut, and CEO Pat Geslinger will cut his salary by 25%. In addition to the pay cuts, there will be no quarterly or annual bonuses for now, merit-based raises are paused, and 401k match is is being reduced from 5% to 2.5%. Intel is still reportedly planning to lay off several hundred employees in California according to local media, which is still drastically less than other tech companies.
And it isn't only pay that is being cut...
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