Intel has announced the retirement of CEO Pat Gelsinger, effective December 1, 2024. Gelsinger has stepped down from his role as CEO and also resigned from the company’s board of directors.
In the wake of his departure, Intel executives David Zinsner, the company’s Chief Financial Officer, and Michelle Johnston Holthaus, General Manager of the Client Computing Group, have been appointed as interim co-CEOs.
Holthaus will also assume a newly created position as CEO of Intel Products, a division encompassing both consumer and enterprise-focused sectors such as data center, AI, network, and edge businesses.
Independent chair of Intel’s board, Frank Yeary, will take on the role of interim executive chair during the leadership transition. Intel has emphasized that leadership at Intel Foundry, the company’s chip design and manufacturing wing, will remain unchanged. Additionally, the board has formed a search committee to find a permanent successor for Gelsinger.
Gelsinger, who first joined Intel as an 18-year-old in 1979, expressed gratitude for his time with the company. “Leading Intel has been the honor of my lifetime. This company has been my life’s work for much of my career, and I am proud of what we’ve accomplished together,” Gelsinger said in a statement. “It has been a challenging year, but necessary decisions were made to position Intel for the future.”
Reports from Bloomberg indicate that Intel’s board presented Gelsinger with the choice to either retire or be removed from his position.
Gelsinger’s tenure at Intel began in 2021, when he returned to the company as CEO amid mounting pressure from activist investors. His return marked an ambitious five-year plan aimed at repositioning Intel as a leader in chip manufacturing, with a particular focus on catching up to competitors like Taiwan’s TSMC and Samsung.
Under Gelsinger’s leadership, Intel committed to building multibillion-dollar chip manufacturing plants in the U.S. and overseas, with the U.S. government providing support through the CHIPS Act. However, his time at the helm was not without setbacks.
Despite Gelsinger’s efforts to transform Intel’s product offerings, such as pushing Intel’s AI chips to compete with Nvidia’s, the company struggled with key technical and market challenges. A drop in PC chip sales, lost clients like Sony and Waymo, and the failed acquisition of Israeli company Tower Semiconductor in 2023 highlighted some of the difficulties faced during his leadership.
Intel also faced major issues with its 18A manufacturing process, which failed to meet expectations and led companies like Apple and Qualcomm to bypass Intel. In addition, Intel’s plan to become a contract manufacturer for other companies faced technical problems.
The company’s revenue declined sharply, falling to $54 billion in 2023, a 33% decrease from the year Gelsinger took over. Intel has since announced plans to cut over 15,000 jobs and restructure as part of a $10 billion cost-reduction initiative.
Despite the challenges, Intel is moving forward under its new leadership. Following Gelsinger’s departure, shares of Intel rose by approximately 2.66%, reflecting a sense of optimism among investors.
“We will continue to focus on simplifying and strengthening our product portfolio, advancing manufacturing and foundry capabilities, and optimizing our operating expenses,” said Yeary in a press release. “Our goal is to create a leaner, simpler, and more agile Intel.”
Intel’s efforts to turn around its fortunes include moves like the spin-off of its foundry business and securing new customer wins, including partnerships with AWS and the Pentagon. However, with ongoing challenges in its core business and the looming need for a permanent CEO, the company’s future remains uncertain.
