Reuters reports that the base salary for Intel’s mid-level workers will be cut by five percent and for Chief Executive Pat Gelsinger by up to 25 percent. However, there will be no reduction in the salary of workers who work according to the company’s schedule. Intel’s executive leadership team will take a 15 percent pay cut and a 10 percent cut for senior managers. Intel said in a statement: “In an effort to address macroeconomic difficulties and reduce costs, we have made several changes to employee compensation. This will help the company save money for investment.”
The salaries of top managers at other large companies have also recently been cut. These include David Solomon, chief executive of investment banking firm Goldman Sachs. There has been a reduction of about 30 percent in his salary. The slowdown is having a big impact on big tech companies. Because of this, many of these companies have taken actions such as layoffs and pay cuts. Last month, the global software company Microsoft decided to lay off thousands of workers. The company plans to reduce its workforce by 5 percent. Some 11,000 workers may be laid off from Microsoft. This will have a greater impact on the engineering and human resources divisions.
Reuters reports that the company is under pressure to maintain the growth rate of its Azure cloud unit. Over the past few quarters, the personal computer market has been hit by the recession and this has affected sales of Microsoft devices and Windows. The company had around 221,000 workers at the end of the June quarter of last year. Of these, around 1,22,000 were in the US and the rest in other countries. The company’s decision to lay off indicates that staff cuts may continue in the technology sector.
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