Intel announced on Monday that CEO Pat Gelsinger has resigned from his position after facing challenges during his time at the company. Gelsinger, who took over as Intel's chief executive in February 2021, was tasked with revitalizing the iconic American tech giant, which was struggling against intense competition, production delays, and talent departures.
Despite efforts to turn the company around, Intel's stock plummeted by 61% during Gelsinger's tenure. The company also announced plans to lay off 15% of its staff in an attempt to reduce costs by $10 billion and implement fundamental operational changes.
Intel, once a dominant force in the computer chip market, fell behind its competitors due to the rise of mobile computing and advancements in AI technology. Nvidia, a former Intel competitor, has now surpassed Intel in value, with a market capitalization 33 times larger than Intel's.
Following Gelsinger's resignation, Intel appointed interim co-CEOs David Zinsner and Michelle Johnston Holthaus while searching for a permanent replacement. The company aims to restore investor confidence by focusing on enhancing its product portfolio, advancing manufacturing capabilities, and optimizing operational expenses.
Intel's board chair, Frank Yeary, emphasized the importance of regaining manufacturing competitiveness and building world-class foundry capabilities. With the new leadership team in place, Intel is committed to creating a leaner, simpler, and more agile organization to address its challenges and drive future growth.
