Intel’s CEO Pat Gelsinger Retires
Pat Gelsinger, the long-serving chief executive of Intel, has officially retired as of December 1, 2024. This decision comes after several challenging years for the technology giant, with the company struggling to regain its footing in an intensely competitive semiconductor market.
Taking over in the interim are David Zinsner, executive vice president and chief financial officer, alongside Michelle Johnston Holthaus, CEO of Intel Products. Both will serve as co-CEOs until a successor is appointed.
Gelsinger, who began his career at Intel in 1979, previously held positions as its first chief technology officer before returning as CEO in 2021 to rejuvenate the company. Under his leadership, significant investments were made to enhance Intel’s manufacturing capabilities, including plans for new factories in Arizona.
Challenges Faced During Gelsinger’s Tenure
Gelsinger’s departure follows a period of turbulence marked by substantial financial setbacks. In a recent press statement, he reflected on his time at Intel, saying, ‘I can look back with pride at all that we have accomplished together, even though it has been a challenging year for all of us.’
The company reported a historical net loss of $16.6 billion for the third quarter of 2024, a stark indicator of the difficulties faced. Intel has also been forced to lay off 15,000 employees, about 15% of its workforce, in efforts to streamline operations.
Board’s Response and Future Directions
Frank Yeary, the independent chair of Intel’s board, acknowledged Gelsinger’s contributions and stated, ‘Pat helped launch and revitalize our manufacturing processes,’ highlighting the investments made during his leadership.
In light of the company’s recent struggles, Yeary noted the importance of restoring investor confidence and maintaining competitive capabilities in the rapidly evolving tech landscape. As per reports, Intel is navigating reduced federal funding while attempting to adapt to shifts in the industry landscape influenced by major players like Nvidia and TSMC.
Looking ahead, Intel plans to conduct a comprehensive search for a new CEO, with the goal of revitalizing the brand and reinforcing its position in the semiconductor market.
The market responded positively to the leadership change, with Intel’s shares rising more than 4% in pre-market trading.
