In a stunning statement on Monday, the faltering chipmaker Intel announced that Pat Gelsinger, its CEO, had retired.
Gelsinger resigned from the business’s board, and two executives, David Zinsner and Michelle Johnston Holthaus, will serve as interim co-CEOs while the company looks for a replacement.
Gelsinger’s departure highlights the unrest within Intel after a more than 40-year career. The rival Nvidia, which has monopolized the market for chips that drive artificial intelligence systems, has surpassed the once-dominant business in the semiconductor industry.
Gelsinger was the first chief technology officer of Intel, having joined the company in 1979. In 2021, he rejoined Intel as its top executive.
“This company has been my life for the majority of my working career,” Gelsinger said in a statement, making his departure sad. I can proudly reflect on everything we have achieved together. Since we had to make difficult but essential choices to position Intel for the present market dynamics, it has been a difficult year for all of us.
Zinsner is Intel’s chief financial officer and executive vice president. Holthaus was named CEO of Intel Products, a newly created role that encompasses the network and edge group, client computing group, data center and AI group, and more.
The interim executive chair will be Frank Yeary, the independent chair of Intel’s board.
According to a statement from Yeary, Pat spent his early years with Intel before rejoining the firm in 2021 at a pivotal moment. In his capacity as a leader, Pat invested in cutting-edge semiconductor manufacturing to help establish and reinvigorate process manufacturing while relentlessly promoting innovation across the organization.
Gelsinger’s exit coincides with an accumulation of Intel’s financial problems. Since he became CEO, the company’s shares have dropped by more than half, and the most recent quarter saw a $16.6 billion loss. In August, Gelsinger revealed plans to reduce 15% of its massive workforce, or roughly 15,000 people, as part of cost-cutting measures aimed at saving $10 billion by 2025.
Meanwhile, earlier this month, Nvidia overtook Intel on the Dow Jones Industrial Average, solidifying its rise.
In contrast to some of its competitors, Intel not only designs semiconductors but also produces them.
Three sources with knowledge of the program who spoke on condition of anonymity to describe private conversations disclosed last week that the Biden administration intends to cut back on some of Intel’s $8.5 billion in federal support for computer chip facilities across the nation.
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The Associated Press was informed by those familiar with the grant that the modifications to Intel’s funding have nothing to do with the company’s financial history or accomplishments.
In early trade, the Santa Clara, California-based company’s shares increased 2.6%. In the last year, the stock has dropped 42%.
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This report was written from London by Kelvin Chan, an AP Business Writer.
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