Intel announces pay cuts to avoid potential layoffs in 2023

Chief Executive Officer Pat Gelsinger is taking a 25% cut to his base salary, the chipmaker said Tuesday.

His executive leadership team will see their pay packages decrease by 15%. Senior managers will take a 10% reduction and mid-level managers a 5% cut.

Intel shares climbed 0.1% in premarket trading in New York Wednesday. The stock lost almost half its value last year.

"As we continue to navigate macroeconomic headwinds and work to reduce costs across the company, we've made several adjustments to our 2023 employee compensation and rewards programs," Intel said in a statement. "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." The move follows a gloomy outlook from Intel last week, when the company predicted one of the worst quarters in its more than 50-year history. Stiffer competition and a sharp slowdown in personal-computer demand has wiped out profits and eaten into Intel's cash reserves. At the same time, Gelsinger wants to invest in the company's future. He's two years into a turnaround effort aimed at restoring Intel's technological leadership in the $580 billion chip industry.