How much 401k and salary cuts will save ? 1B $ 2B? Any guess?
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No matter how much it saves , it still doesn’t address the cote issue : our business model is completely broken and not fit for use in todays market . We are still PC and DC focused and centred. Until the company is broke up we won’t catch AMD on design , ARM will continue to win and above all we will never ever catch TSMC on manufacturing and foundry
401k is US only folks.
Intel's payroll is ~$20B a year (easy to estimate from the QPB $$). Assuming the across the board pay cuts average the 5% mid-layer, they are looking at ~$1B in savings.
So same order of magnitude of just the ELT's options. Got it.
I saw that intel paid around $500M into 401k matching last year, so reducing the match by 50% may save close to half of that depending on how many different types of contributions they make.
It would save around $700 millions.
Savings from 401k cut is only ~$250M
Pat 25% pay cut is only $312k, but don't worry, he still gets > $180M in stocks per year
Source: https://www.cnbc.com/2023/02/01/intel-executives-take-pay-cuts-after-disastrous-earnings.html
Assume 20% of HC is >Gr7 (130K HC): ~26K
Average Salary (G7-G11): 250K, so 5% cut is $12.5K
26K x 12.5K = $325M
Factor in G12 above: $150M (maybe?)
So my guess is maybe 500M from salary and 500M from 401k. All efforts seems to be focused on increasing (short-term) free cash flow without affecting the dividend (for now).
In 2023 alone, the “amazing” ELT wants to save $3B…