NEW YORK — Intel announced Monday that CEO Pat Gelsinger has retired effective December 1, as the once dominant chip-making giant company struggles to catch up with rivals.
The abrupt departure comes after the company in August vowed to cut more than 15,000 jobs in a draconian cost-reduction plan, and paused or delayed construction on several chipmaking facilities.
The company named CFO David Zinsner and newly appointed Intel Products CEO Michelle Johnston Holthaus as interim co-chief executives while it searches for a permanent successor.
Gelsinger, who began his career at Intel in 1979 and served as its first chief technology officer, returned to the company as CEO in 2021 during a critical period for the company.
Intel is one of Silicon Valley’s most iconic companies, but its fortunes have been eclipsed by Asian powerhouses TSMC and Samsung which dominate the made-to-order semiconductor business.
The company was also caught by surprise with the emergence of Nvidia, a graphics chip maker, as the world’s preeminent AI chip maker.
Under Gelsinger’s leadership, Intel invested heavily in semiconductor manufacturing and worked to revitalize its production capabilities, often by relying heavily on government subsidies.
Intel CEO Pat Gelsinger delivers a speech at Taipei Nangang Exhibition Center during Computex 2024, in Taipei on June 4, 2024. (Photo by I-Hwa CHENG / AFP)
US President Joe Biden’s administration last month finalized a $7.9 billion award to Intel as part of his effort of bringing semiconductor production to US shores.
But in Europe, Intel last month said it was delaying its plans to build two mega chip-making factories in Germany and Poland as the company faces lower demand than anticipated.
Intel also said it would pull back on its projects in Malaysia.
“Leading Intel has been the honor of my lifetime,” Gelsinger said in a statement, acknowledging the “challenging year” as the company adapted to market conditions.
Zinsner joined Intel in 2022 from Micron Technology, while Holthaus is a nearly 30-year Intel veteran who previously led the company’s Client Computing Group.
“We know that we have much more work to do at the company and are committed to restoring investor confidence,” Board chairman Frank Yeary said in the company’s statement.
In September, the Wall Street Journal reported that rival Qualcomm had made a takeover approach of embattled Intel, which has a market cap of just over $100 billion.
Intel’s share price on Monday, which has slumped by 50 percent this year, was up by nearly three percent on Wall Street.
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