American chipmaker Intel said on Tuesday that it had made broad cuts to its employee and executive pay.

This comes after the company announced a sinking profit margin in the financial result for 2022, and issued investors a lower-than-expected sales forecast driven by a loss of market share to rivals and a cooling PC market.

๐Ÿ“Š Intel experiences revenue slowdown in 2022
Silicon Valley chip maker Intel suffered a revenue loss in 2022 in its released financial results for the year ended, as the company reacts to economic uncertainty and a slump in PC sales. Annual earnings fell more than 60% in 2022, and full-year revenue dove more than 20% to $63.

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, according to people familiar with the matter.

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.

As early as last year, the chipmaker had begun laying off a part of its workforce, and offering thousands more unpaid leave, as it braces to weather poor sales amid global macroeconomic conditions.