Intel slashes wages, bonuses after disastrous quarterly results

[mahatmakanejeeves]

Oregon Tech

Intel slashes wages, bonuses after disastrous quarterly results

Updated: Feb. 01, 2023, 6:23 a.m. | Published: Jan. 31, 2023, 6:03 p.m.

By Mike Rogoway | The Oregonian/OregonLive

Intel shocked employees Tuesday evening with word that it is sharply cutting employee compensation after reporting miserable financial results last week.

The chipmaker said it will slash base pay for employees above its midlevel ranks by at least 5% effective March 1, according to employees who heard the company’s announcement. Vice presidents will take a 10% cut, more senior executives will receive 15% less, and CEO Pat Gelsinger will get a 25% reduction in his base pay.

Hourly employees and other junior staff, Grade 6 and below in Intel’s ranking system, aren’t getting a pay cut. Annual bonuses will remain for all workers.

But Intel is cutting other incentives for everyone, effective immediately. It has suspended merit raises for all employees, suspended quarterly profit-sharing bonuses and employee recognition programs, and cut 401(k) retirement plan matching payments by half, to 2.5%.

{snip}

-- Mike Rogoway | [e-mail] | 503-294-7699

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[JT45242]

1. I thought 401k match had to be At Least 3%

This might be misreported or illegal.

[bucolic_frolic]

2. So much weakness in tech sector, so they can get away with this most likely

without losing employees.

[Cheezoholic]

3. But wait, aren't they about to be getting significant subsidies from CHIPS?

They were one of the biggest lobbyists for it and stand to be one of the largest benefactors. I know they were hurting prior but.... I hope this act isn't a 52 billion dollar bailout in sheep's clothing or some shit. When chunks of cash like that start getting tossed around from the feds the sleazy corporate grift usually isnt far behind and I personally am leary from history. I hope there are safeguards and guarantees built into this act to prevent fat cats retiring to their private islands with pockets full of free taxpayer cash.

[Tansy_Gold]

4. This was just posted here on Sunday, LOL

https://www.democraticunderground.com/111695228

'You Cut My Paycheck, Watch What Happens'

[Warpy]

5. Intel is finally modernizing and upgrading their chip lithography

after years of sitting on their hands because the tech was so expensive. Likely they've taken these measures only temporarily while the machines are built, delivered, and installed, something I suspect is going on here given the cranes at the local plant.

In any case, this is more likely due to that rather than poor sales or anything else, the lag time for installing any new tech and getting people trained on it analogous to large model changes in cars or anything else resulting in layoffs and furloughs in the short term.

[Backseat Driver]

6. Biden was in Ohio in early Sept for the groundbreaking of their brand new from scratch

chip factory. IIRC, Intel was getting infrastructure funds and a fat tax abatement, not to mention the estimated 7,000 contracted souls that will be needed to build and furnish it and up to 3,000 future employees at its expandable site.

My daughter's FIL in CA always said rust-belt Ohio was a foreign country. Maybe he meant the low wages and used home real estate values? Haha, the developers are planning many new single family homes in the $450K to $700K range for downsizers and rentals around here continue to escalate in cost and dry up in "hot markets" at every prime rate rise.

Kroger, while considering that merger with Albertson's, has also just made a partnership of awareness with my local rural farm product delivery service, Market Wagon. As yet, there's no actual link to the other on either website--just lots of sponsored news stuff in my FB feed, hoping to enhance the best of both worlds. Wonder what it eventually means for consumers?

There are lots of family farmers, dairymen, bakers, and Amish builders alongside rural I-71 north-bound toward Cleveland, and I do remember lots of talk, way back when, about Dayton, too, being billed as the center of a 90-minute market at the intersections of I-70 (east and west} and I-75 (north/south). I've lived in the burbs of all three; the kids added the other two at colleges - Toledo and Cincinnati.

Ahhh, Ohio, the Heart of it All...we got seasons (a different one every 5 minutes) and nature (wonderful parks), big crowded interstate highways, big city life with bikeways along the rivers, but we got lots of gun violence, bad city schools, mega churches, atomic energy plants, and hideous traffic that's getting worse, but we keep getting lots of cute new round-abouts to save energy-wasting stop and go accidents for that -- something for everyone, LOL!

Little weasel, Gov DeWine (R), has been pretty quiet. Would that MAGA Rep Gym Jordan (R) would STFU!