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Pat Gelsinger, CEO of Intel, has retired from his role following a four-year stint in the hot seat at the chipmaker.
In a statement, the company revealed Gelsinger stepped down from the board of directors, effective 1st December.
Following the news, David Zinsner and Michelle ‘MJ’ Johnston Holthaus have been named as interim co-chief executives as the company begins the search for a new CEO.
Zinsner currently serves as executive vice president and chief financial officer, while Holthaus was recently appointed CEO of Intel Products.
Frank Yeary, independent chair of the Intel board, will serve as interim executive chair during the recruitment process. Yeary noted that while the firm has made “significant progress” in regaining competitiveness in the industry, there is still “much more work to do” moving forward.
“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. ”
Commenting on his retirement, Gelsinger described his tenure as CEO as the “honor of my lifetime”.
“Today is, of course, bittersweet as this company has been my life for the bulk of my working career. I can look back with pride at all that we have accomplished together.”
Gelsinger retirement marks the end of an era
Gelsinger began his career in the technology industry at Intel, joining the company as a quality control technician in 1979. Since then, he has held several roles at the chipmaker, including becoming its inaugural chief technology officer.
Both Gelsinger and Intel have experienced significant challenges since he assumed the role of chief executive in 2021, however. Prior to taking the top job, Intel was fighting off stiff competition from industry competitors, including AMD and Nvidia.
Nvidia knocked Intel off its perch as the most valuable US chipmaker in 2020, marking a huge moment in the industry. Since then, Intel has scrambled to keep pace with its one-time plucky rival.
The advent of generative AI further propelled Nvidia, with the firm’s market value skyrocketing as enterprises flocked to its GPU and CPUs.
Under Gelsinger, one part of Intel’s masterplan to regain market share was spinning off the Intel Foundry unit as a subsidiary in a bid to streamline operations.
2024 in particular has been a challenging year at Intel, which Gelsinger pointed to in his retirement announcement. In August, the company announced plans to reduce its workforce by 15%, equivalent to around 15,000 roles.
Poor returns on AI were specifically highlighted as a key factor in this round of layoffs. Gelsinger said the move was part of a cost-cutting initiative in response to poor revenue growth.
“It has been a challenging year for all of us as we have made tough but necessary decisions to position Intel for the current market dynamics,” Gelsinger wrote in his retirement statement. “I am forever grateful for the many colleagues around the world who I have worked with as part of the Intel family.”
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