Pat Gelsinger, Chief Executive Officer of Intel, has resigned less than four years after assuming leadership, leaving the company amidst a critical phase of its turnaround strategy.
Effective December 1, Pat Gelsinger handed over interim leadership to Chief Financial Officer David Zinsner and senior executive Michelle Johnston Holthaus, as the company begins its search for a permanent successor.
Pat Gelsinger’s departure marks a pivotal moment for the Silicon Valley icon, once a global leader in semiconductor innovation. His ambitious plan, launched in 2021, aimed to restore Intel’s manufacturing dominance, which had been eclipsed by Taiwan Semiconductor Manufacturing (TSMC) and competitors like Nvidia, Reuters news report said.
Intel’s board chair, Frank Yeary, acknowledged the company’s progress under Gelsinger but noted the need for further efforts to regain investor trust. This comes as the company struggles with declining market value, down over 60 percent during Pat Gelsinger’s tenure, and challenges in competing in the booming artificial intelligence chip sector dominated by Nvidia.
The resignation coincides with Intel’s ongoing investments, including a $20 billion factory initiative in Ohio and workforce expansion, which strained its finances amidst a declining market for PCs and laptops. Gelsinger also faced criticism for failing to establish Intel as a competitive player in AI chips or to attract high-volume customers to its foundry services.
The company’s stock rose 3 percent following the announcement, although it remains significantly weakened. Intel was recently replaced by Nvidia on the Dow Jones Industrial Average, underscoring the shift in industry leadership.
Intel’s communications chief, Karen Kahn, is also reportedly leaving, signaling additional shakeups in leadership.
