Intel has announced that CEO Pat Gelsinger has stepped down after some challenging months for the company. This shift comes in the wake of difficulties Intel faced capitalizing on the surging demand for AI chips, which led to significant layoffs.
Gelsinger retired on December 1, 2024, after taking the helm at Intel in early 2021, following his previous role at VMware. Alongside his retirement, he has resigned from the board of directors. For now, Intel will be led by David Zinsner and Michelle Johnston Holthaus as interim co-CEOs while the company seeks a permanent successor. Zinsner, previously Intel’s CFO, and Holthaus, who heads the client computing, data center, networking, and AI division, have their work cut out for them.
Intel’s board is forming a search committee, aiming to quickly find Gelsinger’s replacement. Frank Yeary, the independent chair of the board, is stepping in as interim executive chair and emphasized the need to rebuild trust with investors.
Yeary expressed gratitude for Gelsinger’s contributions, highlighting his pivotal role in reviving semiconductor manufacturing and fostering innovation at Intel. However, the company has found itself lagging, struggling to keep up with AI chip demand and losing market share during Gelsinger’s time in charge.
Back in August 2024, Gelsinger announced plans to slash $10 billion from capital expenditures, which would unfortunately mean laying off about 15,000 employees. Despite these setbacks, Yeary noted that the company made strides in enhancing its manufacturing competitiveness and is committed to continuing that momentum.
Under Zinsner and Holthaus, Intel plans to streamline its product lineup and focus on improving manufacturing capabilities while cutting operating costs. Yeary stated that they aim to create a more agile Intel, with a focus on reclaiming leadership in semiconductor processes.
Gelsinger reflected on his time at Intel as both challenging and rewarding, acknowledging the difficult decisions made to align the company with current market needs. He expressed deep gratitude for his colleagues, noting how integral they’ve been throughout his journey with Intel.