Intel suddenly lost its CEO – Pat Gelsinger was sent to retire in the midst of a crisis

Intel CEO Pat Gelsinger has left his post and resigned from the company’s board of directors effective December 1, 2024. His duties will be temporarily filled by Intel CFO David Zinsner and Product Director Michelle Johnston Holthaus. Independent Intel Chairman Frank Yeary will become interim executive chairman.

Image source: Intel

Gelsinger began his career at Intel in 1979. He became CEO of VMware in 2009 and returned to Intel in 2021 as the company’s “savior.” As head of the company, he planned to restore the company’s technological advantage in the field of chip production, which had been lost due to the active development of competitors such as Taiwan Semiconductor Manufacturing Co.

As CEO of Intel, Gelsinger intended to turn the company into a contract chip manufacturer, displacing TSMC and Samsung. As part of this strategy, Intel adopted an expensive plan to expand its network of factories, including the construction of a huge manufacturing complex in Ohio, a project for which the company received federal assistance under the Chips and Science Act.

One of Intel’s main competitors in recent years has been Nvidia, whose graphics chips have proven to be especially effective at training and using generative artificial intelligence models. Cloud computing companies have begun to shift their budgets toward these components. Intel’s own AI chip, Gaudi, could not compete with Nvidia accelerators.

Intel’s problems became apparent during its disastrous earnings report on Aug. 1, when the company reported massive losses and a negative sales outlook. Intel suspended its dividend, which it had paid consistently since 1992. Trying to cut costs, Intel resorted to cuts, froze many investment projects and deprived employees of free coffee and fruit. These measures did not help – Intel shares fell the most since 1982 and lost more than half of their value in 2024. Gelsinger’s resignation was a logical development.

«Intel’s leadership has been a part of my entire life—this group of people is among the best and brightest in the business, and I’m proud to call each of them a colleague. Today is certainly bittersweet as this company has been my life for most of my working career. I can look back with pride on everything we have achieved together. This has been a challenging year for all of us as we have made difficult but necessary decisions to position Intel for current market dynamics,” Gelsinger commented on his resignation.

Yeary, on behalf of the board of directors, thanked Gelsinger for his many years of service and dedication to Intel throughout his long career as a technology leader. “Intel will continue to act with urgency on our priorities: simplifying and strengthening our product portfolio and expanding our manufacturing and foundry capabilities while optimizing our operating costs and capital. We are working to create a smaller, simpler and more flexible Intel,” he said.

Zinsner has over 25 years of financial and operational experience in the semiconductor, manufacturing and technology industries. He joined Intel in January 2022 from Micron Technology, where he was executive vice president and chief financial officer. Zinsner previously held a number of other leadership positions, including president and chief operating officer at Affirmed Networks and senior vice president of finance and chief financial officer at Analog Devices.

Holthaus began her career at Intel nearly three decades ago. Prior to her appointment as General Manager of Intel Products, she was Executive Vice President. Holthaus has held various leadership and leadership positions at Intel, including chief revenue officer and group general manager of sales and marketing, and led global sales.

The board of directors formed a special committee to search for a permanent successor to Gelsinger. The Intel Foundry leadership structure remains unchanged.