Intel's disastrous quarterly numbers have further consequences. According to this, salaries in many areas up to the CEO will be cut by up to 25 percent, CPU prices could drop to stimulate the extremely weak market.
Salary cuts start at the top
At least he's leading the way, Intel's CEO Pat Gelsinger. His base salary is the only one to be cut by 25 percent. The management team, i.e. everything with an executive in the title, has to accept a salary cut of 15 percent, the vice presidents still 10 percent. Below this, all middle-ranked employees are subject to a five percent salary loss. Smaller employees should not be prosecuted, everything stays the same here.
At the management level, however, the basic salary is known to be only part of the group's payments. Stock packages are often added, but all additional incentives and bonuses are said to have been eliminated, according to The Oregonian and SemiAnalysis, which reported first.
These changes are designed to impact our executive population more significantly and will help support the investments and overall workforce needed to accelerate our transformation and achieve our long-term strategy. We are grateful to our employees for their commitment to Intel and patience during this time as we know these changes are not easy.
Interesting are once again the comparisons that Intel's management level chose in the message to employees on Tuesday evening. Intel is stuck in one of the company's biggest crises and draws comparisons with the difficult 1980s, is quoted from Intel's environment (for OEMs)
Reports are coming from Asia that Intel could reduce CPU prices for certain products by up to 20 percent. The 12th generation, which is currently being sold, is said to be primarily affected. However, it is not explained who the up to 20 percent applies to, presumably primarily larger customers. Based on the original price, the 20 percent in retail would not be much anyway, here some prices are already far below this mark. An Intel Core i9-12900K costs from 479 euros in Germany (just over 400 US dollars in the USA) and is therefore already far below its RRP of 658 US dollars, not only in percentage terms. It remains to be seen what remains of such a price reduction in which area.