Hexaware Technologies has announced a salary cut ranging between 2-10 per cent for its employees above certain levels to help control costs. The company claims that about 40 per cent of its employees won't be affected by the pay cut, which becomes effective in April. The measures will not affect employees at the entry level or those with less than or up to three years of offshore experience.

The company also put 350 of its non-billable employees on the virtual bench, paying them just 50 per cent of their basic salary. The software and back-office services provider said the staff who will be moved to the virtual bench are those that are not currently on any project.

It added that the benched staff will continue to remain on the payrolls and will be given time off to improve their skills.

Intel Corp, a bellwether of the technology industry announced a freeze on top salaries and an exchange of "underwater" stock options. Under the plan, the chip maker plans to exchange all but senior executives' "underwater" stock options for options that carry a lower exercise price, becoming the latest corporation to try to compensate employees amid a stock market rout.

Intel detailed the plan this week in a federal filing of its proxy statement. The move must be approved by Intel shareholders.

The company seeks to exchange options with an exercise price above the stock's 52-week high for a lesser number of new options that have about the same fair value as those surrendered.

The plan should be cost-neutral since Intel had accounted for the cost of the options when they were granted. Companies often try to conduct such exchanges as a way to motivate and retain employees, since stock options are part of a compensation package.

But they lose value when the market price of the underlying stock falls below the exercise price, which pushes them "underwater."

After missing its quarterly targets, Hewlett-Packard announced that it would slash employee compensation and benefits across globe. The company in an internal email said that the move will save up to 20,000 jobs.

Under the new plan, company's CEO and President Mark Hurd will cut his own salary by 20 per cent, while executive council members will get a 15 per cent cut. Executives will see their salaries drop by 10 per cent, while lower-level employees will receive cuts of five and two and a half per cent.

Last week, the company said that it will cut the base salaries of some employees in its EDS business by 10 per cent for the month of April. A company spokeswoman said in a statement via email that the move is a "temporary cost action to keep the organization strong while increasing financial flexibility."

The company had earlier announced that 25,000 jobs would be lost as it integrates recently-acquired EDS.

In January, Silicon Valley chip maker Advanced Micro Devices (AMD) decided to shed 1,100 more jobs and cut salaries as it tries to reduce costs in a tough economic environment.

As part of the salary cut plan, AMD CEO Dirk Meyer's base salary will be temporarily reduced by 20 per cent. Salaries of vice presidents across AMD will be slashed by 15 per cent, with employees not eligible for overtime taking a 10 per cent cut and overtime-eligible employees taking a 5 per cent cut. The company also said it will suspend its 401(k) match for employees.

The company said AMD employees outside North America will also see pay cuts consistent with local policies and regulations.

In a statement, the company said, "As a result of the continuing global economic downturn, we have determined that we need to take difficult but prudent actions designed to reduce our costs. Beginning in February, we are undertaking several steps to lower costs, including temporarily reducing employee base pay and suspending some benefits programmes."

In December, the beleaguered cellphone maker Motorola reduced executive salaries and freezed US pension plans to help cope with the economic slump.

Co-chief executive officers Greg Brown and Sanjay Jha are taking a 25 per cent cut in base salary in 2009, Motorola said in a statement. Employees in many markets won't get a raise, and the company will temporarily stop making matching contributions to US workers' retirement investment accounts.

The pay cuts and pension freeze will help Motorola add to the $800 million in annual costs savings it announced in October, including 3,000 job cuts.

Recently, the mobile handset maker announced that it will cut 4,000 more jobs in 2009, in addition to 3,000 it announced in October. The company said the move will save about $700 million a year starting in 2009, and total $1.5 billion in annual savings when combined with the previous cut.