Intel CEO Pat Gelsinger has retired after less than four years at the helm, marking a period of upheaval for the once-dominant semiconductor giant. The announcement, made unexpectedly, comes as the company struggles to regain its footing amidst mounting financial and market pressures.
Gelsinger, who first joined Intel in 1979 and later became its first Chief Technology Officer, returned as CEO in 2021 to steer the company through critical challenges. Despite efforts to revitalise Intel’s manufacturing processes and foster innovation, the company has faced fierce competition, particularly from Nvidia. Nvidia’s rise has been so significant that it replaced Intel on the Dow Jones Industrial Average earlier this month.
In the wake of Gelsinger’s departure, Intel’s board has appointed David Zinsner and Michelle Johnston Holthaus as interim co-CEOs while a permanent successor is sought. Zinsner serves as Executive Vice President and CFO, while Holthaus oversees a range of key product divisions. Frank Yeary, independent chair of Intel’s board, will assume the role of interim Executive Chair.
Intel has been grappling with significant financial challenges, posting a staggering €15.9 billion loss in its most recent quarter. The company also announced plans to cut 15,000 jobs in cost-saving measures aimed at reducing expenses by €9.5 billion by 2025.
Adding to its woes, the Biden administration has scaled back part of Intel’s €8 billion in federal funding for its chip plants. Intel’s shares, which have dropped 42 per cent over the past year, rose 2.6 per cent in morning trading following the announcement.
Photo: intel.com
