While Gelsinger inspired the company’s moves to reignite domestic manufacturing after it had dropped the ball due to listening to suits for too long, Intel has had rough financial results over the last two years and never seemed to get a break.
He took the reins of Intel in 2021 and quickly masterminded the company’s “IDM 2.0” effort to launch a glorious domestic semiconductor manufacturing plan. The silicon giant moved quickly to build new facilities in Ohio and Arizona, a multibillion-dollar effort bolstered by promised US CHIPs and Science Act funds.
But those plans were overshadowed by continued sour economic news that saw dwindling profits and mass layoffs after the COVID-19 pandemic. In August, the company announced that it would cut 15,000 jobs – 15 per cent of its global workforce -- after disappointing quarterly results that showed a net income drop of 85 per cent.
Chipzilla named senior leaders David Zinsner and Michelle (MJ) Johnston Holthaus interim co-chief executive officers while the board searches for a new permanent CEO. Frank Yeary, independent chair of Intel’s board of directors, will become interim executive chair. The company said in a release that Intel’s remaining leadership structure will remain unchanged.
Yeary said: “While we have made significant progress in regaining manufacturing competitiveness and building the capabilities to be a world-class foundry, we know that we have much work to do at the company and are committed to restoring investor confidence,” Yeary said in a statement.
Holthaus was also named CEO of Intel Products, a permanent role.
Gelsinger started his career at Intel in 1976 and eventually became the company’s chief technology officer before leaving in 2009 and eventually becoming CEO at VMware in 2012. He returned to Intel to fill the role of outgoing Intel CEO Bob Swan, who held the role for just two years. Gelsinger called his sudden retirement “bittersweet” and praised his co-workers.
“Leading Intel has been the honour of my lifetime -- this group of people is among the best and brightest in the business, and I’m honoured to call every one a colleague,” Gelsinger said.
“It has been a challenging year for all of us as we have made tough but necessary decisions to position Intel for the current market dynamics.”
In a statement, interim co-CEOs Zinsner and Holthaus said, “We are grateful for Pat’s commitment to Intel over these many years as well as his leadership. We will redouble our commitment to Intel Products and meeting customer needs. We will be focused on driving returns on foundry investments.”
Intel recently received nearly $8 billion in CHIPs Act funding, less than the $8.5 billion it had originally expected.
