Intel CEO Gelsinger retires; Zinsner and Johnston Holthaus named interim co-CEOs
Intel CEO Pat Gelsinger has retired, the struggling chipmaker said in a surprise announcement Monday.
Two company executives, David Zinsner and Michelle Johnston Holthaus, will serve as interim co-CEOs while the company searches for a replacement for Gelsinger, who also resigned from the company’s board.
The apparent ousting of Gelsinger, whose career spans more than 40 years, underscores the turmoil at Intel. The company was once a dominant force in the semiconductor industry, but has been eclipsed by rival Nvidia, which has cornered the market for chips that run artificial intelligence systems.
Nvidia’s rise was solidified earlier this month when it replaced Intel on the Dow Jones Industrial Average.
Gelsinger started at Intel in 1979 and served as its first chief technology officer. He returned to Intel as general manager in 2021.
Zinsner is executive vice president and chief financial officer at Intel. Holthaus was named to the newly created role of CEO of Intel Products, which includes the Client Computing Group, the Data Center and AI Group, and the Network and Edge Group.
Frank Yeary, independent chairman of Intel’s board of directors, will become interim executive chairman.
“Pat spent his formative years at Intel, then returned at a critical time for the company in 2021,” Yeary said in a statement. “As a leader, Pat helped launch and revitalize manufacturing processes by investing in cutting-edge semiconductor manufacturing, while working tirelessly to drive innovation across the company.
Gelsinger’s departure comes as Intel’s financial woes mount. The company reported a loss of $16.6 billion in the most recent quarter. Gelsinger announced plans in August to cut 15% of its massive workforce – or about 15,000 jobs – as part of cost-cutting efforts aimed at saving $10 billion in 2025.
Unlike some competitors like Nvidia, Intel manufactures chips in addition to designing them.
Last week it was revealed that Biden administration plans to cut some of Intel’s $8.5 billion in federal funding for computer chip factories across the country, according to three people familiar with the matter who spoke on the condition of anonymity to discuss private conversations.
That reduction is largely due to the $3 billion Intel also receives to supply computer chips to the military. President Joe Biden announced the agreement to supply Intel with up to $8.5 billion in direct funding and $11 billion in loans in March.
The changes to Intel’s financing are not related to the company’s financial performance or milestones, the people familiar with the matter told The Associated Press.
Shares of the Santa Clara, Calif., company rose 2.6% in morning trading. Its stock has lost 42% over the past year.
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AP Business Writer Kelvin Chan contributed to this report from London.
