- Intel Monday announced CEO Pat Gelsinger has resigned after a difficult stint at the company. The once-dominant chipmaker’s stock cratered as it missed the AI boom and was surpassed by most of its rivals.
- At Intel, Gelsinger was tasked with turning around the iconic American tech giant that was struggling against unprecedented competition, production delays and the departure of top talent.
- But during his tenure, the company’s prospects continued to decline, as it became clear the company had fallen behind on another major technology wave and despite billions of dollars in US government spending to support its domestic chip manufacturing.
- Intel’s (INTC) stock plunged 61% during Gelsinger’s tenure. The stock rose 3% in early trading on Monday, before dipping more than 1% by midday.
- The company announced in August that it would lay off 15% of its staff as part of an effort to slash $10 billion in costs and “fundamentally change the way we operate,” as Gelsinger said at the time.
Gelsinger stepped down as CEO and resigned from Intel’s board effective December 1, the company said Monday. He will be replaced by interim co-CEOs David Zinsner, Intel’s chief financial officer, and Michelle (MJ) Johnston Holthaus, general manager of Intel’s client computing group, as the company conducts a search for a permanent new CEO. Holthaus has also been named to the newly-created CEO of Intel products, which will oversee, among other things, its data center and AI product efforts.
“While we have made significant progress in regaining manufacturing competitiveness and building the capabilities to be a world-class foundry, we know that we have much more work to do at the company and are committed to restoring investor confidence,” Frank Yeary, Intel’s independent board chair, who has been named interim executive chair following Gelsinger’s exit, said in a statement.
“With Dave and MJ’s leadership, we will continue to act with urgency on our priorities: simplifying and strengthening our product portfolio and advancing our manufacturing and foundry capabilities while optimizing our operating expenses and capital. We are working to create a leaner, simpler, more agile Intel,” Yeary said.