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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)

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Dylan Patel

@dylan522p

Feb 1

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

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Mike Rogoway

@rogoway

Feb 1

No cuts in base pay for employees Grade 6 and below

Mike Rogoway

@rogoway

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.

oregonlive.com

Intel slashes wages, bonuses after disastrous quarterly results

The pay cuts will have a profound effect in Oregon, where Intel employs 22,000.

2:06 AM · Feb 1, 2023

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They should have swapped the pay cut with increase in stock options so the employees will be more vested on company's success going forward.

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All this just to retain its dividend is insane. My guess is that many of the best engineers will leave, Apple for one has lost some key engineers and is probably recruiting now. Intel is a lost cause it appears.