Pat Gelsinger Steps Down as Intel CEO Amid Company Turmoil
In a surprising announcement on December 2, 2024, Intel Corporation revealed that Pat Gelsinger has resigned as CEO, effective immediately. Gelsinger, who took the helm of the semiconductor giant in February 2021, leaves behind a company struggling with significant challenges in the competitive chip market. His departure marks a pivotal moment for Intel, which has seen its stock price plummet by 70% since he took over, alongside a drastic decline in revenue and profit.
The announcement came just before the U.S. stock market opened, leading to a 5% increase in Intel's share price, a sign of investor relief or optimism regarding potential new leadership. In the interim, David Zinsner, previously the CFO, and Michelle Johnston Holthaus, who managed several divisions, will jointly oversee the company's operations. Frank Yeary, an independent board member, has been appointed as the interim executive chairman.
Gelsinger's tenure was marked by ambitious plans to revitalize Intel's manufacturing capabilities and re-establish its position in the semiconductor industry, particularly in the face of fierce competition from companies like Nvidia and TSMC. However, despite significant investments in foundry services, the company has struggled to turn around its fortunes, leading to criticism of Gelsinger's strategies. Under his leadership, Intel's revenue fell from $79 billion in 2021 to $52 billion in 2023, and net profits dropped from $19.9 billion to just $1.8 billion.
Yeary expressed gratitude for Gelsinger's contributions, stating, "While we have made significant progress in restoring competitiveness in manufacturing and building the capacity for a world-class foundry, we know there is still a lot of work ahead of us." The board is now tasked with finding a permanent replacement for Gelsinger as Intel navigates this critical juncture in its history.
