Amid tech layoffs around the country, one company with a sizeable presence in the Valley has outlined how it will be tightening its own belt.
Intel will be altering some of its employee's pay and bonus benefits.
A letter to employees obtained by ABC15 outlines the following changes:
- The suspension of merit increases for 2023. Intel managers will still deliver annual reviews with eligibility for stock grants.
- The suspension of the Quarterly Profit Bonus (QPB) and QPB+ programs.
- The suspension of all employee recognition programs, including IAA/QA, DRAs, Top Achiever, Service, and others.
- Awards, and peer-to-peer and manager-to-peer recognitions.
- A reduction of the company's U.S. 401K match from 5% to 2.5%.
- Effective March 1, a reduction in base compensation for exempt employees in Grade 7 and above.
Reductions are on a graduated scale designed to impact executive compensation more significantly, with Grade 6 and below and non-exempt employees receiving no reduction.
- CEO: 25% salary reduction
- Executive Leadership Team: 15% salary reduction
- Grades 12+: 10% salary reduction
- Grades 7-11: 5% salary reduction
Changes will be subject to local laws and consultations where required.
Intel did not say if there will be or have already been layoffs in Arizona, but in a statement to ABC15 said:
“As we continue to navigate macro-economic headwinds and work to reduce costs across the company, we’ve made several adjustments to our 2023 employee compensation and rewards programs. 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. We are grateful to our employees for their commitment to Intel and patience during this time as we know these changes are not easy.
Intel remains committed to innovating and investing in Arizona, as we’ve done for more than 40 years.”
Economist Jim Rounds, president and CEO of Rounds Consulting Group says it’s the cuts are part of a larger economic shift and he isn’t worried about the long-term health of the tech industry in Arizona.
“Arizona is getting a larger and larger share of the tech pie given all the economic development efforts we’ve been doing. Even if the pie shrinks a little but our wedge gets bigger, that means we’re going to net benefit from it,” Rounds said.
