A week after releasing a sales estimate that was lower than what was anticipated due to a loss of market share to competitors and a slump in the personal computer industry, Intel Corporation announced on Tuesday that it has made widespread cuts to an employee and executive pay. These cuts were a response to the company's recent sales estimate.

The salary of the company's managers and executives will be reduced by between 5 and 25 per cent, according to a source who was familiar with the issue but who was not authorised to speak publicly about it. This individual said that the income of the company's hourly workers would remain the same.
 

A spokesperson for Intel named Addy Burr issued a statement in which she said that the ‘changes are aimed to hit our executive population more severely and will assist in funding the investments and overall staff.’
 

Intel announced this week that its profit margins have been plunging as a result of the cooling of the PC market. This comes after several years of growth during the epidemic.

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Gelsinger did admit, however, that Intel had 'stumbled' and lost market share to competitors such as Advanced Micro Devices Inc., which on Tuesday posted quarterly sales that topped the estimates of Wall Street. Gelsinger's admission came after Advanced Micro Devices Inc. posted quarterly sales that topped Wall Street's expectations.

According to a source with knowledge of Intel's upcoming wage reductions, vice presidents will experience a pay drop of 10%, while senior executives within the corporation, with the exception of the CEO, would face a pay cut of 15%.

According to the source, the company has also ceased awarding merit raises and quarterly performance incentives, and it has decreased the percentage of contributions it makes to employee 401(k) plans from 5% to 2.5%.

The yearly performance bonuses at Intel are still linked to the firm's overall financial performance; but, in recent years, the size of these bonuses has been steadily declining as the corporation has fallen farther and further behind its competitors.