Intel CEO Pat Gelsinger bows out as crisis escalates

Pat Gelsinger displays wafers that represents Intel's four nodes in five years process strategy launched under his leadership at the Intel Foundry Direct Connect event in February 2024. Source: Intel

Under Gelsinger’s leadership, Intel launched ambitious manufacturing initiatives and process innovations to close the gap to its industry rivals, including investments in new semiconductor foundry technology.

"Leading Intel has been the honour of my lifetime,” wrote Gelsinger in a company statement.

“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.”

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David Zinsner, Intel’s CFO, and Michelle Johnston Holthaus, the newly appointed CEO of Intel Products, will serve as interim co-CEOs.

Holthaus will oversee key product groups, including Client Computing, Data Centre and AI, and Network and Edge.

While board chair Frank Yeary will step in as interim executive chair.

Building capacity to compete

“We have made significant progress in regaining manufacturing competitiveness... but we know that we have much more work to do,” said Yeary about the transition.

Intel's Q3 2024 earnings paint a stark picture of these struggles with the company reporting a $16.6bn net loss.

Restructuring and impairment charges of 15.9bn heavily impacted these results.

Despite revenue of $13.3bn – down 6% year-on-year – Intel continues to push for operational efficiency and cost reductions, targeting $10bn in savings by 2025.

Righting the ship

The financial pressures set a wave of strategic shifts into motion, including a focus on foundational products and a realignment of its manufacturing operations.

Holthaus and Zinsner affirmed their commitment to Intel’s product leadership and foundry investments, suggesting a focus on innovation and customer-centric solutions moving forward.

Gelsinger's exit signals the beginning of a pivotal period for Intel as it seeks to rebuild investor confidence, strengthen its portfolio, and regain its technological edge.