[News] Intel CEO Gelsinger Steps Down Amid Board’s Frustration Over Slow Recovery Efforts

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Intel announced that CEO Pat Gelsinger retired from the company on December 2, sending shockwaves through the semiconductor industry.

According to a Bloomberg report citing sources, Gelsinger was reportedly forced into retirement last week after the board of directors lost confidence in his plans to revitalize the company and reverse its decline.

The Bloomberg report, citing sources, states that tensions peaked during discussions between Gelsinger and the board about Intel’s efforts to reclaim market share and narrow the gap with NVIDIA. The board reportedly gave Gelsinger two options: retire voluntarily or face dismissal. Gelsinger ultimately chose to announce his retirement, ending his professional career at Intel, the report notes.

In its press release, Intel announced that while the board searches for a successor, David Zinsner, the company’s CFO, and Michelle Johnston Holthaus, head of Intel’s product division, will serve as interim co-CEOs. Frank Yeary, Intel’s independent board chair, will act as interim executive chair.

Notably, a Reuters report highlights that Gelsinger’s departure comes less than a week after the U.S. approved USD 7.86 billion in subsidies for Intel.

The 63-year-old Gelsinger was once regarded as Intel’s savior. According to the Bloomberg report, he began his career at Intel as a teenager but left in 2009 to become CEO of the software company VMware. When he returned to Intel in 2021, Gelsinger expressed his deep passion for the company and a strong determination to restore its former glory. He pledged to reclaim Intel’s manufacturing leadership in the chip industry.

According to the Reuters report, in July 2021, Gelsinger unveiled a turnaround plan that included a USD 20 billion investment in new factories in Ohio and an expansion of Intel’s workforce to 132,000 employees, the largest in the company’s history. However, this spending coincided with a post-pandemic decline in laptop and PC demand, which caused Intel’s gross margins to drop significantly.

Furthermore, the Reuters report mentions that Gelsinger was unable to launch a competitive AI chip to rival NVIDIA, which surged toward a USD 3 trillion valuation by powering AI services like ChatGPT.

Despite presenting a four-year blueprint aimed at reestablishing Intel’s dominance in the semiconductor industry, Gelsinger was ultimately forced to step down as CEO, the Reuters report notes.

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(Photo credit: Intel)