Intel CEO Pat Gelsinger is retiring. The manager leaves office in the middle of the company’s crisis, which is immersed in a change of strategy and significant losses. His departure is effective from Sunday, December 1, as announced by the company in a statement. He has also left the Board of Directors.
The processor firm He is looking for a replacement, but in the meantime he has appointed two managers to co-manage the company. They are David Zinsner and Michelle Johnston Holthaus, executive vice president and chief financial officer and chief product officer, respectively. “They have been appointed co-CEOs while the Board of Directors searches for a new CEO,” the company clarifies. In addition, Frank Yeary will temporarily replace him on the governing body.
In the statement issued this Monday, the company does not give reasons for Gelsinger’s departure and only mentions his retirement. Gelsinger developed part of his career at Intel and returned to the company in 2021 “at a critical moment,” acknowledges the processors company. The firm is still in that delicate moment and the until now CEO He returned to lead the profound transformation that the company is going through.
Intel has fallen behind in the industry because it has focused on computer chips, but it does not have great weight in the industry of video game processors or more complex models for more sophisticated computing or artificial intelligence (AI). The company has been changing this for years and updating the chips it designs and manufactures. However, this process is long and expensive, since manufacturing chips is complex and sophisticated.
On the other hand, Intel has made a big bet on its transformation. It is a company that designs and manufactures processors, when the usual thing in the sector is to dedicate itself to one thing or another. Nvidia only designs and Taiwan Semiconductor Manufacturing Company (TSMC) only melts. Intel has changed its role in the industry and has opened its factories to third parties, competitors, to continue being both things at the same time, but not just manufacturing its models.
Gelsinger already warned that developing the chip foundry would bring losses and, specifically, that division would weigh down the firm’s global accounts for several years, as it is happening. In the last quarter, the Californian company had historical losses of 16,639 million dollars.
52% drop in the stock market
“We have made great progress in gaining competitiveness in manufacturing and in building a leading foundry, but we know that we have more work to do and we are committed to returning shareholder confidence,” the statement said. So far this year, Intel’s stock market decline amounts to 52.1%. In addition, the company has received other blows, such as its departure from the Dow Jones index.
The precarious situation in which Intel has been left in the market has attracted companies interested in buying it. Qualcomm tested the firm and considered acquiring it.
On the other hand, Intel has had to redo its plans several times this year. To return to the forefront of the industry, the firm announced significant investments in Europe or the United States. In the Old Continent, Intel has paralyzed all its investments, except in Ireland. Furthermore, in the summer, the company laid off 15% of the workforce, around 15,000 workers.
The former CEO has said in the letter that leading Intel has been the honor of his life and that it is a bittersweet moment since the company has been his life for much of his career.
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