Facing a challenging financial outlook for 2023, Intel has announced cuts to pay, pensions and bonuses. Credit: Martyn Williams After posting a double-digit revenue decline for its fourth quarter of 2022, Intel is looking to weather a potentially problematic 2023 by making companywide cuts to employee pay. Responding to media reports about possible pay cuts, Intel said on Wednesday that in order to navigate “macro-economic headwinds and work to reduce costs across the company,” it has made several adjustments to its 2023 employee compensation and rewards programs. “[These changes] will help support the investments and overall workforce needed to accelerate our transformation and achieve our long-term strategy,” the statement continued. “We are grateful to our employees for their commitment to Intel and patience during this time as we know these changes are not easy.” Though Intel did not divulge details of the pay-cut plan, midlevel workers will have their salaries cut by 5% and senior leaders will be faced with reductions of 10%, according to a media report confirmed by Reuters. The company’s top executives will have their pay slashed by 15%, while Intel’s CEO Pat Gelsinger will also be cutting his base salary by 25%. The news outlet further reported that Intel will be halving 401(k) contributions and suspending merit-based pay raises and quarterly performance bonuses. However, despite the wide-ranging cost-cutting measures, employees that are paid hourly will not be seeing a reduction in pay, it said. Intel’s poor fourth quarter performance was not a surprise, given that most consumer-facing businesses continue to see weak demand, said Mario Morales, group vice president of enabling technologies and semiconductors at IDC. Poor sales of PC and server chips has led to weak demand for semiconductors. “I expect it to be a long recovery for Intel because inventories will not bottom until mid-year, and it will not be until the end of the year going into 2024 when we start seeing year over year growth for the semiconductor industry,” Morales said, adding that the company must hit each product in its roadmap over the next year if it is to stand a chance at recovery. Related content news Amazon Q Business now available with new app-builder capabilities The new Amazon Q Apps feature allows enterprise users to build applications using natural language prompts. By Anirban Ghoshal Apr 30, 2024 4 mins Amazon Web Services Generative AI Enterprise Applications news analysis CHIPS Act is working as billions of dollars in payouts is divvied out to semiconductor makers About $29 billion has been earmarked for more than a half dozen chip makers; the Biden Administration believes the spending will spur US chip production to reach 20% of the world's market, nearly double what America now produces. By Lucas Mearian Apr 30, 2024 7 mins CPUs and Processors Government feature Apple is intensely focused on its global AI efforts When the ship that is Apple moves in any direction, you can always count on careless whispers to expose the destination. From research labs to sophisticated AI models and Apple Silicon for server farms, here's what we've learned in just one By Jonny Evans Apr 30, 2024 6 mins Apple Artificial Intelligence feature What Capgemini software chief learned about AI-generated code: highly usable, 'too many unknowns' for production While most of Capgemini's clients are reticent to use AI-generated code in production, the technology has led to big efficiency and productivity increases that developers and engineers might not yet realize, says Jiani Zhang, the company's By Lucas Mearian Apr 30, 2024 21 mins Developer Engineer Generative AI Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe