There is an economic crisis sweeping the technology sector and major tech companies are responding by making massive job cuts. Is Intel about to join the likes of Microsoft, Google, Amazon, and many others in reducing its workforce? Not quite, but who knows what the future holds. While Intel employees will keep their jobs, it seems they will do so with less money.
Shareholders have spoken and the company is responding to the apparent market recession by cutting pay for employees by 5%. And yes, this will be happening across the company. Reports from employees in all Intel divisions and pay scales suggest this is affecting everyone who works for the chip giant.
These changes are affecting base salaries, quarterly bonuses, annual bonuses, and 401k matches (down from 5% to 2.5%), while raises are suspended. This is even happening at the boardroom level, where the cuts seem to be higher. Executives are facing a 10% to 15% pay cut, while CEO Pat Gelsinger will receive 25% less.
I suppose it is good that Intel is keeping people in their jobs instead of cutting them entirely. Microsoft, Meta, Amazon, Google, PayPal, Spotify, and more have announced job cuts in recent weeks.
Big Tech Job Cuts
Microsoft brushed off reports of major job cuts as “rumor” before then confirming it will slash over 10,000 employees over the next three months. Google joined in last week by confirming it will cut 12,000 jobs. Both layoff cuts will account for 5% or more of Google and Microsoft's global workforce.
Amazon is also releasing around 20,000 employees, while Twitter and Facebook have also announced major reductions. Spotify is slashing 6% of its workforce and PayPal this week announced 2,000 people will be cut, around 5% of its employee base.
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