Intel CEO Pat Gelsinger is stepping down after a more than three-year tenure marked by financial challenges, loss of board confidence and a costly expansion strategy that left the tech giant searching for new leadership.
The CEO of Intel, Pat Gelsingerretires after a tumultuous tenure at the helm of chip giant Intel (INTC) announced this Monday that Gelsinge, retired effective December 1 and left his position on the company’s board of directors. Gelsinger led aggressive efforts to turn around the troubled US chipmaker for more than three years. This has its correlation in the Cedar of the firm listed in the Buenos Aires market.
Intel shares rise more than 3% on the news. A maximum since last November 12 when it rose more than 3.3%. According to the press, the board of directors lost confidence in Gelsinger and considered a change necessary before 2025. The decision was made by a small group within Intel, and the management team was only informed on Sunday afternoon.
It is unclear whether Intel will continue Gelsinger’s costly strategy of making chips for other companies, according to the same source.
Gelsinger’s replacement
Intel appointed David ZinsnerCFO, already Michelle JohnstonCEO of Intel Products, as interim co-CEOs. The company said its board of directors has formed a search committee that will work “diligently and expeditiously to find a permanent successor to Gelsinger.”
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“While we have made significant progress in regaining competitiveness in manufacturing and developing capabilities to be a world-class foundry, we know there is still much to do and we are committed to restoring investor confidence,” said Frank Year, president of Intel, in a statement.
Gelsinger previously spent 30 years at Intel before leaving the company in 2009. He returned in 2021 as CEO, succeeding Bob Swan.
He promised to give Intel a mentality “Grovian“, referring to former CEO Andy Grove, who led a dramatic turnaround in the 1980s when Intel faced challenges maintaining its dominance in the memory chip market due to Japanese competition. Under Grove, the company made a turnaround dramatic move towards the manufacturing of CPUs, becoming the main manufacturer of this type of chips.
Gelsinger’s strategy included aggressive improvements to manufacturing processes and a shift toward making chips for third parties. However, the expensive foundry business has so far failed to strengthen confidence in the company. Recently, Intel has become a potential acquisition target.
Intel stock has fallen more than 50% so far this year, and it was recently replaced by Nvidia on the Dow Jones (DJIA). Meanwhile, the S&P 500 (^GSPC) is up 26%.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
