In a surprising move, Intel CEO Pat Gelsinger has announced his retirement after just over three years leading the company. Gelsinger, who had previously spent most of his career at Intel before returning in 2021 to try and turn the company around, is stepping down effective December 1st, 2024.
According to a report from Bloomberg, Gelsinger was given the option to retire or be removed by Intel's board of directors after meeting to discuss the company's progress in catching up to rivals like Nvidia. Gelsinger's efforts to revive Intel's fortunes haven't gone as planned, as the company has struggled with a number of challenges.
Intel has largely missed out on the booming AI chip market that has fueled Nvidia's rise, failing to launch new technology on schedule and dealing with recent CPU stability issues. The company's new Arc GPUs also received a lukewarm reception, with Intel admitting the launch "didn't go as planned."
Earlier this year, Intel revealed its chipmaking business had $7 billion in operating losses in 2023, leading the company to announce plans to lay off over 15,000 workers as part of a $10 billion cost-cutting effort. There were even rumors that Qualcomm was considering acquiring Intel, though that prospect appears to have cooled.
In a statement, Gelsinger said "Leading Intel has been the honor of my lifetime" but acknowledged it has been a "challenging year" as the company has had to make "tough but necessary decisions" to position Intel for the current market dynamics.
With Gelsinger out, Intel's Chief Financial Officer David Zinsner and Intel Products CEO Michelle Johnston Holthaus will serve as co-CEOs on an interim basis while the board searches for a permanent replacement. Frank Yeary, an independent chair on Intel's board, will take on the role of interim executive chairman.
The shakeup at the top comes as Intel continues to struggle to regain its footing in the rapidly evolving semiconductor industry. Gelsinger's early efforts to turn the company around clearly fell short, and now Intel must find new leadership capable of steering it through this difficult period. The stakes are high, as Intel's future as a leading chip manufacturer hangs in the balance.
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