Intel CEO Pat Gelsinger will take a 25% cut to his salary.
The chipmaker is reducing management pay following a major fall in earnings and revenue.
- Intel
announced on Tuesday that Gelsinger's base salary will be cut by 25%,
while his leadership team and senior managers will take cuts of 15% and
10%, respectively.
- Midlevel managers will see pay cuts of 5% as
the company struggles to reduce costs and "navigate macroeconomic
headwinds," Intel said in its statement.
- Intel is saving cash reserves to finance a turnaround strategy aimed at regaining its leadership in the $580B chip industry.
- The
plan will include building new production facilities in the U.S. and
Europe and increasing the rate at which Intel develops new technology.
- Intel faces increased competition from Asian chipmakers as the wider industry struggles with a fall in demand for consumer electronics.
- Intel announced poor earnings projections last week as it works to achieve $10B in cost reductions by 2025.
