📰 Intel CEO Pat Gelsinger Steps Down
Leadership shake-up follows struggles in AI and market share; Interim co-CEO's named.
Intel INTC 0.00%↑ announced the retirement of CEO Pat Gelsinger, effective December 1, marking the end of a challenging four-year tenure. CFO David Zinsner and Products CEO MJ Holthaus will serve as interim co-CEOs, while Frank Yeary steps in as interim executive chair.
Shares of Intel rose 5% in pre-market trading following the announcement, signaling investor optimism about potential leadership changes.
Gelsinger’s departure comes on the heels of a $7.86 billion grant finalized under the CHIPS and Science Act, aimed at bolstering Intel’s factory expansion efforts. Despite these efforts, the company has struggled with significant market share losses and a failure to establish a foothold in the burgeoning AI market.
Year-to-date, Intel’s stock has plummeted 52%, reflecting deep investor concerns. The company’s strategic pivot, including plans to spin off its foundry business as an independent subsidiary, has yet to materialize into a turnaround.
In addition to underwhelming financial results and a sharp 50-year sell-off in August, Intel announced a 15% workforce reduction as part of a $10 billion cost-cutting initiative. Reports of Qualcomm exploring a potential acquisition added to the uncertainty surrounding the company’s future.
Intel’s next steps under interim leadership will be closely watched as the company navigates a challenging industry landscape and heightened investor scrutiny.
Source: Reuters, The New York Times
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