Gelsinger Out as Intel CEO as Chip Giant Struggles to Regain Footing

Pat Gelsinger, who became Intel’s CEO and launched an ambitious effort to return the semiconductor giant to past domestic manufacturing glory, on Monday announced his retirement and stepped down from the board of directors -- effective immediately.

Gelsinger took the reins of Intel in 2021 and quickly masterminded the company’s “IDM 2.0” effort to launch an ambitious domestic semiconductor manufacturing plan. The silicon giant moved quickly to build new facilities in Ohio and Arizona, a multibillion-dollar effort bolstered by promised funds from the US CHIPs and Science Act.

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% of its global workforce -- after disappointing quarterly results that showed a net income drop of 85%.

Intel on Monday also named senior leaders David Zinsner and Michelle (MJ) Johnston Holthaus interim co-chief executive officers while the board hunts for a new permanent CEO. Frank Yeary, independent chair of Intel’s board of directors, will become interim executive chair. Intel’s remaining leadership structure will remain unchanged, the company said in a release.

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“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 and eventually became 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 honor of my lifetime -- this group of people is among the best and brightest in the business, and I’m honored to call each and every one a colleague,” Gelsinger said in a 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.”

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.”

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Intel had recently been awarded nearly $8 billion in CHIPs Act funding, less than the $8.5 billion it had originally expected.