Intel cuts employee compensation to preserve cash for a turnaround plan, including 25% for CEO Pat Gelsinger, 15% for leadership, and 5% for mid-level managers
Intel Corp., struggling with a rapid drop in revenue and earnings, is cutting management pay across the company to cope …
Intel employees and managers face a clearer signal that the turnaround will require reductions across compensation and staffing rather than a one-time executive concession.
Third-order effects
Intel’s subsequent rounds of planned workforce reductions indicate a restructuring pattern in which cash preservation is pursued through successive cuts to compensation, headcount, and shareholder payouts.
If that sequence persists, Intel’s turnaround will be defined as much by a smaller cost structure as by efforts to restore its competitive position.
The trend: Intel is moving from targeted management pay reductions toward a wider, multi-year restructuring of its cost base.
Intel is doing huge cuts to base wages/salary for ALL employees. Also pausing bonuses. Also cutting 401k match. I got 3 different messages about this from Intel employees within 30 seconds. This affects people from product to fab to design. Oof. $INTC @intel $AMD $TSM $NVDA https…
$6B is a lot of money to bribe shareholders. $INTC management should trust that owners would act in their own benefit for a bit. Or if the cycle lasts longer and by 2024 we're still with low utilization rates, Intel will be significantly impaired.
Today's @benthompson post defending $INTC dividend astonished me, because it was LAST WEEK that BT wrote how Blockbuster went under due to huge debt burden. ALL of Intel competitors have net cash positions, with SEC having the second largest net cash pile between tech companies h…
Not only is Intel management casting a vote of no confidence in their own business (ie, as unworthy of investment), they're casting a vote of no confidence in themselves (ie, as unable to identify underperforming people and teams). https://twitter.com/...
2015: Intel Allocates $300 Million for Workplace Diversity https://www.nytimes.com/... Stock Performance since Jan 2015 when this announcement was made: Intel: 0% Nasdaq Index: +145% https://twitter.com/...
$INTC has a 5.2% div yield. CFO said “committed to maintaining a competitive dividend” which is meaningless phrasing. Going to guess they halve it to 73 cents annually (2.6%) and maintain that's “competitive” given: $AMD nil% $NVDA 0.08% $TXN 2.8% $MU 0.73% $TSM 1.9% https://twit…
My sources at Intel confirm. They say * Suspended merit increases, suspended quarterly profit bonus, 401k match cut by 1/2 * Base pay for Grade 7 employees and above by 5% (grades 7-11) to 25% (for CEO) https://twitter.com/...
More details here. Gelsinger delivered the message in a somber, companywide address this evening. He sought to rally employees by referencing hard times Intel endured during the 1980s. But it's far from clear that Intel can engineer another comeback. https://www.oregonlive.com/..…
Intel Cuts Pay For Employees https://www.semianalysis.com/ ... Ooof! If true this is grim. Wouldn't a 20% RIF have been a better strategy? It's been done before & it helped the company. In this ultra competitive semiconductor market, it can't delay the structural fixes req'd. $in…
Let me list the ways that this is a horrible idea by Intel $INTC, at least as described so far. It could be salvaged if employees get a huge amount of stock options and the dividend is getting cut along with it. 🧵 https://twitter.com/...
Intel is the first big tech to go beyond layoffs and institute broad pay cuts. Annual bonuses paused, 401K match halved, merit increases on hold and actual pay cut by 5% to 15%. On a positive note, shareholders can still expect a quarterly dividend. 🥲 https://www.semianalysis.com…
Article with more details. This is a horrible situation. @PGelsinger believes that it is better to pay a dividend that Intel cannot afford than to retain employees https://www.semianalysis.com/ ...