What just happened? Intel CEO Pat Gelsinger has announced his retirement after more than 40 years with the chip giant. His last day on the job was December 1. Reflecting on his tenure, Gelsinger expressed his gratitude for the opportunity to lead the company but acknowledged the challenges of the past year, which required tough strategic decisions to adapt to current market conditions.
"Leading Intel has been the honor of my lifetime – this group of people is among the best and the brightest in the business, and I'm honored to call each and every one a colleague. Today is, of course, bittersweet as this company has been my life for the bulk of my working career. I can look back with pride at all that we have accomplished together," 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. I am forever grateful for the many colleagues around the world who I have worked with as part of the Intel family," he added.
In light of Gelsinger's surprise retirement, Intel has appointed two seasoned executives as interim co-CEOs: David Zinsner and Michelle "MJ" Johnston Holthaus. Zinsner, currently Intel's CFO, will share leadership responsibilities with Holthaus, a nearly 30-year Intel veteran who most recently led the Client Computing Group.
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The co-CEO structure brings together complementary expertise. Zinsner has more than 25 years of experience in finance, including previous CFO roles in the tech sector. Holthaus, a long-serving Intel leader, brings deep operational knowledge of the company's core product groups.
Intel's board chairman, Frank Yeary, explained that this unorthodox co-CEO approach is designed to ensure product teams have the resources and support needed during this transition. He emphasized the critical importance of regaining Intel's manufacturing edge to maintain product leadership.
Yeary credited Gelsinger's efforts to boost Intel's manufacturing through new fab investments. However, he acknowledged more progress is needed to restore investor confidence after the company's recent struggles.
Indeed, Intel stock has almost halved this year, though it also rose 6% in premarket trading on Monday. Though today's figures point to a rally following this news, analysts predict that Intel's efforts to revamp its manufacturing processes are unlikely to yield significant financial improvements until late 2025.
The company's poor financial performance has been exacerbated by delays in its manufacturing processes, subpar product launches, and market share losses. Hardships such as CPU crashes, yield issues, job cuts, and the rise of competitors AMD and Nvidia have further strained the business.
To navigate this period, Intel's board has formed a committee to find a permanent CEO replacement. Yeary said the interim leaders will prioritize simplifying Intel's product lineup and improving operational efficiency.
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"With Dave and MJ's leadership, we will continue to act with urgency on our priorities: simplifying and strengthening our product portfolio and advancing our manufacturing and foundry capabilities while optimizing our operating expenses and capital. We are working to create a leaner, simpler, more agile Intel," Yeary concluded in the press release.