Intel in Trouble as CEO Gelsinger Resigns

On Monday, December 2, 2024, American chip manufacturer Intel announced that CEO Pat Gelsinger has resigned after leading the company for over three years.

Gelsinger stated in a released statement on Monday, “Leading Intel has been the honor of my lifetime—these people are the best and brightest in the industry, and I am privileged to call each of them colleagues.”

Intel has appointed Chief Financial Officer David Zinsner and Executive Vice President Michelle Johnston Holthaus as interim co-CEOs to temporarily oversee the company’s operations. A special committee has been formed by the board of directors to select a new CEO.

At the time of this announcement, the long-standing chip manufacturer is facing significant challenges. The company’s stock price has dropped by over half this year. Last month, its competitor Nvidia replaced Intel as a new component stock of the Dow Jones Industrial Average. For over twenty years, Nvidia has been one of the 30 “blue-chip” companies in the Dow Jones index.

Gelsinger acknowledged that this has been a “challenging year” for Intel. In August, the company announced cost-cutting measures, including laying off over 15% of its workforce, around 15,000 people, and suspending dividends starting from the fourth quarter.

Intel’s board chairman Frank Yeary stated in a released statement on Monday, “While we have made significant progress in restoring manufacturing competitiveness and building the ability to become a world-class foundry, we know there is still much work to be done, and we are committed to restoring investor confidence.”