Intel CEO Pat Gelsinger retired on December 1, marking the end of a bold leadership era during which he navigated significant challenges and transformative changes.
Leadership Transition at Intel
David Zinsner, Intel’s CFO, and Michelle Johnston Holthaus, GM of Intel Client Computing Group, have been named interim co-CEOs. Holthaus will also lead Intel Products, a newly established division encompassing client computing, data center, AI, networking, and edge businesses. Additionally, Frank Yeary, independent chair of Intel’s board, will serve as interim executive chair during this leadership transition. Intel’s Foundry division remains unchanged, while the board has launched a search committee to identify Gelsinger’s permanent successor.
A Legacy of Innovation and Ambition
Gelsinger, who first joined Intel as an 18-year-old, leaves behind a storied legacy. As the lead architect of the groundbreaking 80486 processor in 1989, he quickly rose through the ranks, becoming Intel’s youngest VP at 32 and its CTO in 2001. Gelsinger spearheaded key innovations, including Wi-Fi, USB technology, and the Intel Core and Xeon processor lines, before moving on to lead VMware as CEO.
Returning to Intel in 2021, Gelsinger undertook a bold five-year transformation plan, championing massive investments in U.S. and overseas chip manufacturing facilities. He also played a key role in lobbying Congress to subsidize domestic chip production, securing up to $7.86 billion through the CHIPS Act for semiconductor manufacturing in several U.S. states.
Challenges During Gelsinger’s Tenure
Despite his vision, Gelsinger faced significant hurdles. Intel’s ambitious projects, including its 18A manufacturing process, struggled with reliability and technical setbacks, leading major customers like Apple and Qualcomm to opt out. Revenue from personal computer chips fell by 25% in 2022, and Intel lost market share in data centers to AMD. Efforts to position Intel as a chip fabricator for other companies encountered operational challenges, while strained relations with TSMC hurt supplier discounts.
Gelsinger also made controversial moves, including salary cuts and workforce reductions, as the company grappled with declining revenue. Intel annual revenue dropped to $54 billion in 2023, a sharp decline from the year Gelsinger took the helm. Analysts predict a $3.68 billion net loss for Intel this year, its first annual loss since 1986.
Looking Ahead
Intel faces an uncertain future as it works to regain its competitive edge. The company has announced plans to restructure, cut more than 15,000 jobs, and delay construction on key manufacturing projects. While Gelsinger’s departure signals the end of a transformative era, the challenges that remain will demand innovative leadership to navigate Intel’s next chapter.
In his farewell, Gelsinger reflected on his time at Intel, stating, “Leading Intel has been the honor of my lifetime… This company has been my life for the bulk of my working career. I am forever grateful for the many colleagues I’ve worked with as part of the Intel family.”
