Pat Gelsinger
Pat Gelsinger resigns at a time of great difficulties within the company. He was reportedly pressured to leave due to the slow progression of the shift to manufacturing the fastest and smallest computer chips on the market.
After a turbulent tenure marked by missed opportunities, declining market value and increased competition, Intel’s CEO, Pat Gelsingerhas now resigned from the position he assumed just over three years ago, in February 2021, after the board of directors lost confidence in the recovery plan, according to .
Directors felt that Gelsinger’s expensive and ambitious plan to transform Intel was not working and that progress on the change was not fast enough, according to an agency source familiar with the matter.
During Gelsinger’s mandate, which was thus reformed, Intel’s share value fell 61%— a reflection of the company’s struggles to adapt to major technological changes, including the Artificial Intelligence (AI) revolution.
Despite billions in investment by the US government aimed at bolstering domestic chip manufacturing, the market value of chips has soared thanks to strategic investments in AI-focused chips.
Intel had already announced major layoffs earlier this year, cutting 15% of its workforce as part of a $10 billion cost reduction plan, a “fundamental operational change,” Gelsinger said at the time. . Despite these measures, the company’s trajectory continued to be unsatisfactory.
Intel’s challenges go beyond leadership changes. The company faces increasing pressure to transform its business model. Manufacturing processors for competitors like Apple is one of the pressuresa move that puts it in direct competition with the sector leader, TSMC.
Gelsinger’s resignation took effect on December 1, with interim co-CEOs David Zinsner, Intel’s Chief Financial Officer, and Michelle Johnston Holthaus, Managing Director of the Client Computing Group, taking over as the company searches for a permanent successor. . Holthaus will also lead a newly created division focused on data center and AI product development.
“While we have made significant progress in restoring manufacturing competitiveness and building the capabilities to be a world-class foundry, we know we have much more work to do across the company and are committed to restoring investor confidence,” he said in Frank Yeary , chairman of the board of directors at Intel.
“With Dave and MJ’s leadership, we will continue to act with urgency on our priorities: simplifying and strengthening our product portfolio and advancing our manufacturing and foundry capabilities while simultaneously optimizing our operating and capital expenditures. We’re working to create a leaner, simpler, more agile Intel“, highlighted Yeary.
