Intel CEO Pat Gelsinger Departs Amidst Challenges To Turnaround Plan

Intel CEO Pat Gelsinger announced his resignation on December 1 following a board meeting last week. According to a report from Reuters, the board of directors felt the ambitious plan to turn Intel around was not working, and the change was not progressing fast enough. The departure comes as the chipmaking giant faces stiff challenges.

Intel CEO Pat Gelsinger Retires

After 1,300 layoffs at its Hillsboro campus, losing half its value, and being knocked off the Dow Jones Industrial Average Spot by competitor Nvidia, Oregon-based Lattice Semiconductors was investigating potentially purchasing Intel’s Altera.

As the board worked on turnaround plans, an announcement was made that Intel would receive almost $8 Billion In Federal Funding. Amidst this, Bloomberg reported that Intel’s board met last week and told Gelsinger he would be fired if he didn’t step aside.

Gelsinger, 63, opted to retire on Monday after 30 years in the business and almost four years at the helm. Although Intel developed more advanced computer chips, as competitors took up chunks of the market share, its revenue plummeted.

Gelsinger’s turnaround plan, which included diversification into contract manufacturing, didn’t gain traction. When Gelsinger was hired in 2021, eight of Intel’s 11 directors were on the board and had backed his turnaround strategy unanimously.

Gelsinger said in a statement that his leadership position at the chipmaker was the “honor of my lifetime.” He said, “It has been a challenging year for all of us as we have made tough but necessary decisions to position Intel for the current market dynamics.”

Intel Seeking New CEO

In a written statement, Intel board Chair Frank Yeary indicated that while Intel has made significant progress in regaining manufacturing competitiveness and building the capabilities to be a world-class foundry,  there remains much more work to do at the company.

Yeary confirmed that the chipmaker is committed to restoring investor confidence.

In the interim, two lieutenants of Gelsinger will act as CEO while Intel searches for a permanent replacement.

Chief Financial Officer David Zinsner and Michelle Johnston Holthaus, senior executive in charge of the company’s PC business, have been named interim co-chief executive officers to act during the search for a new CEO. A search committee has been formed to find Gelsinger’s successor.

Intel’s shares climbed a little under 6% in early Monday trading to around $25.40 after the news was made public.