Intel CEO Pat Gelsinger steps down after 40 years

Gelsinger, who became a prominent figure in the tech world, called leading Intel “the honor of his lifetime.” His career at Intel saw many highs, but recent challenges have allowed competitors to overtake the company in key markets.

To manage the transition, Intel has appointed David Zinsner and Michelle Johnston Holthaus as interim co-CEOs. Zinsner is Intel's Chief Financial Officer, while Holthaus leads Intel Products, which includes the client computing and artificial intelligence divisions.

Intel’s board is actively searching for a permanent CEO to lead the company forward. Frank Yeary, the board’s independent chair, will step in as interim executive chair during this period.

The 63-year-old Gelsinger shared his feelings in a statement, calling it a bittersweet moment. “Intel has been my life for the bulk of my working career,” he said. “I can look back with pride at what we have achieved together, even as we’ve faced difficult challenges.”

Gelsinger first joined Intel in 1979 as a technician, fresh out of Lincoln Technical Institute. Over the years, he earned his bachelor’s degree in electrical engineering and climbed the ranks. He became Intel’s first Chief Technology Officer in 2001 and secured eight patents while working as a microprocessor design engineer.

After leaving Intel in 2009, Gelsinger worked at Dell EMC and later served as CEO of VMware before returning to Intel in 2021 to lead the company during a critical time.

Gelsinger’s return to Intel came during a challenging period. The company has struggled to keep pace with competitors in the booming artificial intelligence (AI) chip market. In recent years, Intel has faced declining stock value and financial losses.

In September, Intel’s stock hit a 10-year low, dropping nearly 50% this year. The company reported a massive $16.6 billion loss in the third quarter of 2024. This was a sharp contrast to the $300 million profit reported in the same period last year.

To address these issues, Intel announced cost-cutting measures, including laying off 15,000 employees. Despite these efforts, the company has yet to regain investor confidence.

Industry experts believe that a new CEO could bring fresh energy to Intel and restore its position in the tech market. Frank Yeary acknowledged the company’s struggles but praised Gelsinger’s contributions. “Pat returned at a critical time for Intel and has shown incredible dedication. We know there’s still work to do to win back investor trust and deliver on our product goals,” Yeary said.

Following the news of Gelsinger’s retirement and the leadership changes, Intel’s shares rose by 3.9% on Monday. This signals some optimism from investors about the company’s future.

As Intel looks for a new CEO, it hopes to tackle its challenges and reestablish itself as a leader in the semiconductor industry. Gelsinger’s legacy, marked by innovation and dedication, leaves big shoes to fill for whoever takes on the role next.