Pat Gelsinger, CEO of Intel, resigns after a disastrous tenure
CNNNOV 19 2024
The company has named CFO David Zinsner and Michelle Johnston Holthaus as interim co-CEOs while conducting a search for a permanent replacement, with Holthaus also appointed as CEO of Intel Products.Intel's Chief Executive Officer Pat Gelsinger has abruptly retired effective Dec. 1, 2024, stepping down from both his position and the company's board after less than four years at the helm.
Under Gelsinger's leadership, Intel's stock declined by 53%, while competitor Nvidia's value soared to $3.4 trillion, making it 33 times more valuable than Intel's $104 billion market capitalization.The lead architect of Intel's 4th generation 80486 processor, introduced in 1989, and the youngest VP in the company's history, Gelsinger was reportedly given the option to retire or be removed.
Intel recently announced a 15% workforce reduction, affecting approximately 15,000 jobs, as part of a $10 billion cost-reduction plan to address declining revenues.The company has named Executive Vice Pres. and Chief Financial Officer David Zinsner and newly-appointed CEO of Intel Products Michelle Johnston Holthaus as interim co-CEOs.
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The sudden departure disrupts Intel's ambitious turnaround plan, including its strategy to become a major contract manufacturer and restore American semiconductor leadership. Gelsinger's abrupt departure potentially jeopardizes crucial initiatives and partnerships, which were showing early signs of progress.