Intel shares close higher on Tuesday, company makes broad cuts to employee and executive pay

Intel Corp (INTC) said earlier this week it had reduced pay for employees and executives. The cuts will be within the range of 5% for mid-level employees to 25% for the company’s Chief Executive Officer Pat Gelsinger.

Pay for vice president level employees will be cut by 10% and top executives other than the CEO will see 15% reductions.

On the other hand, pay for Intel’s hourly staff will not be reduced.

The announcement comes one week after the tech company forecast lower sales than anticipated due to a loss of market share to competitors such as Advanced Micro Devices Inc and a PC market downturn.

According to a spokesperson for Intel, the “changes are designed to impact our executive population more significantly and will help support the investments and overall workforce.”

The shares of Intel Corporation closed 1.11% ($0.31) higher at $28.26 on Nasdaq on Tuesday, with the technology company’s total market cap now standing at $116.91 billion.

The shares of Intel Corporation went down 48.68% in 2022, compared with a 19.44% loss for the benchmark index, S&P 500 (SPX).

Analyst stock price forecast and recommendation

According to TipRanks, at least 17 out of 28 surveyed investment analysts had rated Intel Corp’s stock as “Hold”, while 8 – as “Sell”. The median price target on the stock stands at $27.62.