Intel announced staff salary cuts

The U.S. corporation Intel reported significant pay cuts for employees and executives. A week earlier, the company published a lower sales forecast for 2023 than analysts had expected. This is due to Intel's loss of market share and a decline in demand for PCs.

Salaries for mid-level employees will be cut by 5 percent and for senior executives by 10 percent. Intel CEO Pat Gelsinger's salary will decrease by 25%. Salaries of managing staff will be cut by 15%. Hourly wages for employees will not be cut, a source familiar with the situation at the company told Reuters.

According to Intel spokesman Eddie Burr, the changes should have a significant impact on the corporation's management, as well as help support investments and staff.

Intel's total number of employees in 2022 is 131,900, up nearly 9 percent from 2021.

Gelsinger earlier acknowledged that Intel has lost market share to competitors such as Advanced Micro Devices, whose quarterly sales results exceeded analysts' expectations.

For 2022, Intel's revenue fell by 20% to $63.1 billion. The company's net income fell by 60% to $8 billion. According to experts, the corporation's low financial performance is due to falling demand in the PC and data center markets. In the first quarter of 2023, Intel expects revenue of $10.5-11.5 billion.

After the publication of the forecast for 2023, the market value of Intel decreased by about $ 8 billion. Analysts believe that the company's capital expenditures in the current year will be about $ 20 billion.