Intel Pat Gelsinger Steps Down as the CEO After Beig Given Two Options by the Board

Intel made the unexpected announcement that Pat Gelsinger, its CEO, had retired. The financially troubled chipmaker announced in a statement that Gelsinger's retirement takes effect on December 1st.

According to reports, Gelsinger, the CEO of Intel, was evicted. The board of directors of the firm made the decision in the face of mounting doubts about the chipmaker's capacity to reclaim market share and contend with rivals such as Nvidia. A meeting last week where the company's performance and future plans were reviewed caused the board to lose faith in Gelsinger's leadership. Gelsinger was offered the choice to stand down or be removed, but he choose to do so.

According to the report, the Board believed Gelsinger's pricey and ambitious plan to turn Intel around was failing, and the pace of change was too slow. Gelsinger's retirement comes as Intel's financial troubles have grown. Intel's troubles were highlighted during a terrible earnings announcement on August 1, when the company reported a surprise loss and a bleak sales forecast. Intel also stopped its dividend, which had been paid out since 1992. To save expenses, Intel announced that it will lay off more than 15% of its workers, which totaled over 110,000.

Interim CEOs Announced

In the interim, David Zinsner, Intel's CFO, and Michelle Johnston Holthaus, Chief Product Officer, will serve as co-CEOs. The board is presently seeking a permanent replacement.

Unlike some of its competitors, Intel not only designs but also manufactures semiconductors. Under Gelsinger, the company has been seeking to expand its foundry business in the United States, producing semiconductors designed by other firms, in order to compete with market leader Taiwan Semiconductor Manufacturing Co.

Pat Gelsinger's farewell note

"Today is, of course, bittersweet because this company has been my life for the majority of my professional career," Gelsinger said in the statement. "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."

Gelsinger joined Intel in 1979 as a teenager (18 years old) and later became the company's first chief technical officer. In 2021, he returned to Intel. When he returned, he promised to reclaim the chipmaker's production dominance, which it had lost to competitors such as Taiwan Semiconductor production Co.