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[News] Record-Breaking 1,991 CEOs Step Down in the U.S. in 2024
According to a TechNews report, statistics from the U.S. human resources consulting firm Challenger, Gray & Christmas reveal that 2024 has been marked by widespread layoffs across various industries in the U.S., with over 600,000 employees already dismissed. The report further highlights that, alongside these layoffs, the number of CEOs resigning has reached record high, prompting many companies to appoint interim leaders as replacements.
CEO Resignations Reach Record High in 2024
Citing the latest data as of December 20, 2024, from Challenger, Gray & Christmas, the report highlights that a total of 1,991 CEOs had stepped down by November, surpassing the previous record of 1,914 resignations in all of 2023. This also marks a 16% increase compared to the 1,710 resignations during the same period in 2023. Additionally, the proportion of interim CEOs has risen significantly, from 7% in 2023 to 13% in 2024.
Based on the statistics from Challenger, Gray & Christmas, the report notes that the government and non-profit sectors saw the highest number of CEO resignations, with 438 departures, followed by industries such as medical products, technology, entertainment and leisure, and finance. Geographically, California recorded the most CEO resignations, with 223, followed by New York, Texas, and Florida. The reasons for these resignations include retirement, pursuing new opportunities, or transitioning to other roles within the same organization.
The Reason Behind the Record-High CEO Resignations
The TechNews report, citing Challenger, Gray & Christmas, indicates that the unprecedented number of CEO resignations in 2024 can primarily be attributed to changing economic conditions. As labor market demand slows and the overall market faces potential downturn risks, companies are responding by cutting operational costs and changing business models to adapt. These adjustments have contributed to the increased rate of CEO turnover.
High-Profile CEO Departures in the U.S. in 2024
One of the most notable CEO departures in the U.S. in 2024 is Intel’s CEO Pat Gelsinger, who announced his retirement in early December, concluding his four-year tenure at the company. Under his leadership, Intel faced consecutive quarters of declining revenue and net losses. Also, the company failed to achieve significant breakthroughs in the AI chip and semiconductor foundry markets. These factors might have contributed to Gelsinger’s decision to step down, as the report notes.
The report also highlights other high-profile resignations. In March 2024, Boeing CEO Dave Calhoun resigned following a scandal related to quality issues with the company’s passenger planes. Stellantis CEO Carlos Tavares stepped down due to poor sales performance in North America. Meanwhile, Nike CEO John Donahoe transitioned to an advisory role, while Elliott Hill—a 32-year veteran of Nike who retired in 2020 returns to take over the position.
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(Photo credit: Intel)
Please note that this article cites information from TechNews and Challenger, Gray & Christmas.
