It hasn’t been long since Intel announced the layoff of about 340 people in California. And now, it is reportedly resorting to pay cuts. While mid-level employees may have to forego five per cent of their basic pay, the senior managers will see 10 per cent of their basic pay being cut. Pat Gelsinger, chief executive officer, Intel, will take a 25 per cent cut.
Those working on hourly wages will be spared any pay cut.
The Company reportedly admitted that “adjustments” to salaries and rewards are being made as part of cost cutting measures, considering the tough macroeconomic conditions.
Intel hopes that these measures will impact the senior executives more and will facilitate the Company’s strategy in the long run.
Regarding the layoffs, the Company assures that it is determined to ensure a dignified layoff process and treat the laid off employees respectfully.
The Company reportedly plans to axe 500 jobs in California.
The layoffs were announced in the Worker Adjustment and Retraining Notification (WARN) notice. As per the WARN Act, employers are required to provide 60 days’ notice to employees as well as state officials in case of mass layoffs.