Pat Gelsinger, CEO of Intel, has stepped down effective immediately, marking a dramatic leadership shift at the iconic chipmaker. Intel announced Gelsinger’s departure on December 1, amidst growing challenges to reclaim its dominance in the semiconductor industry. Reports suggest that Gelsinger faced an ultimatum from the company’s board—resign or be removed—following concerns over the pace of Intel's turnaround under his leadership. This comes during a period of intense competition with rivals like Nvidia and Taiwan Semiconductor Manufacturing Co. (TSMC), compounded by financial setbacks and restructuring challenges that have tested the company’s resilience.
Forced Exit Amid Performance Concerns
Gelsinger’s exit follows mounting frustration from Intel's board over his ambitious, yet costly, revival strategy. Sources revealed that a pivotal meeting last week, where Intel’s performance and future plans were scrutinized, led to a loss of confidence in his leadership. His turnaround plans, including aggressive investments in manufacturing and foundry operations, were deemed too slow in delivering results. Intel’s recent struggles, highlighted by a surprising quarterly loss and a suspension of its long-standing dividend, added fuel to the fire.
The financial turmoil has forced Intel to announce a significant workforce reduction, cutting over 15% of its 110,000 employees in an attempt to control costs. Despite these measures, Intel’s market share and ability to compete remain under pressure.
Interim Leadership Takes Charge
Intel has appointed its CFO, David Zinsner, and Chief Product Officer, Michelle Johnston Holthaus, as co-CEOs on an interim basis. The board is actively searching for a permanent replacement, aiming to bring stability and vision to a company grappling with industry headwinds.