Jan 31 (Reuters) - Intel Corp (INTC.O) said on Tuesday that it had made broad cuts to employee and executive pay, a week after the company issued a lower-than-expected sales forecast driven by a loss of market share to rivals and a PC market downturn.
The reductions will range from 5% of base pay for mid-level employees to as much as 25% for Chief Executive Pat Gelsinger, while the company's hourly workforce's pay will not be cut, said a person familiar with the matter who was not authorized to speak publicly...
...The person familiar with Intel's pay cuts said that in addition to 5% decreases for mid-level employees, vice president level employees will see 10% reductions and the company's top executives other than the CEO will get 15% cuts.
The company has also lowered its 401(k) matching program from 5% to 2.5% and suspended merit raises and quarterly performance bonuses, the person said.
Annual performance bonuses based Intel's overall financial performance will remain but those bonuses have been smaller in recent years as the company has lost ground to rivals, the person added.
The revenue numbers must look really, really bad in order for the organization to make this move, which will instantly tank morale and cause employees to look elsewhere.
I imagine there are many Intel employees who are current or former readers of the blog. If so, I am terribly sorry to hear this bad news. Best wishes to you folks, and best wishes to all of us.
Now imagine the same thing happening at Moderna and Pfizer when the EUA gets pulled on May 11. If there is no emergency, there is no EUA and then you need to go through the full approval process. Furthermore, the govt is not guaranteeing payment anymore.
ReplyDeleteExcept Pfizer and Moderna have full FDA approval for their mRNA COVID vaccines and other major markets. Additionally, Pfizer had something like 40-50B in non-COVID revenue pre-pandemic and they've mentioned those business lines not shrinking the past 3 years. So even if you were to assume all COVID money disappeared from Pfizer, they'd not be anywhere close to broke. They also just had a press release that they're submitting 19 drugs for approval in the US over the next 18 months. They're not going to have money issues....
DeleteModerna on the other hand was almost bankrupt pre-COVID.
Re: above commenter on Pfizer
ReplyDeletehttps://endpts.com/covid-public-health-emergencies-to-end-in-may-but-fdas-eua-authority-will-continue/
The problem with these clawbacks is that Gelsinger is paying for mistakes made by his predecessors. Intel has been on the wrong path for decades.
ReplyDelete