Pat Gelsinger, CEO of Intel, announces his retirement.
Intel has announced that its CEO, Pat Gelsinger, will retire. David Zinsner and Michelle Johnston Holthaus have been appointed as interim co-CEOs.
Pat Gelsinger, the CEO of Intel, has announced his retirement, effective December 1. Additionally, he has stepped down from his position on the company’s board of directors. David Zinsner and Michelle Johnston Holthaus have been appointed as interim co-CEOs; Zinsner is Intel's CFO, while Holthaus leads the company's Client Computing Group. Holthaus will also take on the new role of CEO of Intel Products, which encompasses areas focused on consumers, as well as data center, artificial intelligence, networking, and edge businesses.
Frank Yeary, who serves as the independent chair of Intel's board, will take on the role of interim executive chair during this transition period. The company has assured that the leadership of Intel Foundry, its chip design and manufacturing division, will remain unchanged. A search committee has also been established to find a permanent successor for Gelsinger.
In a statement, Gelsinger expressed his gratitude for having led Intel, describing his colleagues as the best in the industry and reflecting on the achievements made during his career at the company, which has been his life’s work. He noted that, although it was a challenging year filled with tough decisions, he is thankful for the support he received from his colleagues around the world.
According to reports, Intel’s board offered Gelsinger the option to retire or be let go. His career at Intel began at the age of 18 after completing an associate's degree. Throughout his tenure, he played a crucial role in the development of the 80486 processor and became CTO in 2001, driving significant advances in technologies such as Wi-Fi and USB.
In 2009, Gelsinger left Intel to join EMC and later became CEO of VMware in 2012. He returned to Intel in 2021 facing pressure from activist investors, launching a turnaround plan that included building chip factories worth billions of dollars in the U.S. and overseas.
However, his tenure was marked by various difficulties. The relationship with TSMC soured, causing Intel to lose key discounts, and the performance of its AI chips did not meet expectations. Intel's revenue figures fell dramatically, facing losses and challenges on multiple fronts, including the loss of major customers like Waymo and Sony.
In 2023, the company failed to acquire Tower Semiconductor and faced issues with its 18A manufacturing process, resulting in a loss of confidence from companies such as Apple and Qualcomm. The situation led the company to consider selling its autonomous driving and enterprise networking divisions. Despite efforts to improve its position, such as restructuring and significant layoffs, Intel reported historic losses in its last quarter.
Following the announcement of Gelsinger’s departure, Intel's shares experienced a slight uptick. Yeary emphasized that the company will continue to prioritize strengthening its product portfolio and manufacturing capabilities while improving its operational structure.
