Intel CEO Pat Gelsinger has retired, stepping down from his leadership role and the company’s board of directors, effective December 1, 2024. Gelsinger, whose career with Intel spanned over four decades, leaves behind a legacy of innovation and leadership during critical periods of the company’s evolution.
In response, Intel has appointed Chief Financial Officer David Zinsner and Client Computing Group General Manager Michelle Johnston Holthaus as interim co-CEOs. Holthaus will also lead Intel Products, a newly formed division consolidating key areas such as client computing, data center, AI, and networking. According to Bloomberg, Gelsinger was given the option to retire or be removed by the Intel board.
The step down of Gelsinger comes at a time where Intel’s financial performance paints a picture of a company in distress. With a reported 14% drop in revenue in 2023 and losses exceeding $7 billion, Intel’s challenges are manifold. These financial woes are compounded by strategic missteps, including difficulties with its Gaudi AI accelerators and the underwhelming launch of its Arrow Lake CPUs.
The replacement of Intel by Nvidia in the Dow Jones Industrial Average in November underscores strong shifting dynamics within the semiconductor industry.
Leadership Reshuffle to Strengthen Focus
Frank Yeary, Intel’s independent board chair, will take on the role of interim executive chair during this period of transition. Intel has also formed a search committee to identify a permanent CEO.
Yeary praised Gelsinger’s contributions, stating, “Pat spent his formative years at Intel, then returned at a critical time for the company in 2021. As a leader, Pat helped launch and revitalize process manufacturing by investing in state-of-the-art semiconductor manufacturing, while working tirelessly to drive innovation throughout the company.“
Holthaus’s appointment as CEO of Intel Products signals the company’s strategic focus on aligning its product development with evolving customer needs. This structural change complements Intel Foundry Services (IFS), a division dedicated to external semiconductor manufacturing, which remains integral to the company’s long-term goals of regaining competitive ground.
Yeary emphasized Intel’s broader objectives: “Ultimately, returning to process leadership is central to product leadership, and we will remain focused on that mission while driving greater efficiency and improved profitability.“
Related: Qualcomm Hits Pause on Intel Acquisition Amid Regulatory and Market Hurdles
Gelsinger’s Career and Reflection
Gelsinger described his time at Intel as the “honor of my lifetime” and reflected on the challenges and achievements of his leadership. “Leading Intel has been the honor of my lifetime — this group of people is among the best and the brightest in the business, and I’m honored to call each and every one a colleague,” he said. “Today is, of course, bittersweet as this company has been my life for the bulk of my working career. I can look back with pride at all that we have accomplished together.“
Gelsinger initially joined Intel in 1979 and became the company’s first Chief Technology Officer. After a period away, he returned as CEO in 2021, navigating Intel through intense competition in the semiconductor market while spearheading efforts to modernize its manufacturing processes.
Related: Nvidia to Replace Intel on Dow Jones Industrial Index As AI Race Heats Up
Profiles of Interim Leaders
David Zinsner, who joined Intel in 2022 after serving as CFO at Micron Technology, brings more than 25 years of experience in financial leadership. His roles at companies like Analog Devices and Affirmed Networks have honed his expertise in operational efficiency and strategic planning.
Michelle Johnston Holthaus, an Intel veteran of nearly three decades, has held inportant roles such as Chief Revenue Officer and General Manager of the Sales and Marketing Group. As CEO of Intel Products, she will drive product strategy across the company’s core sectors, emphasizing customer-oriented innovation.
In a joint statement, Zinsner and Holthaus expressed their shared commitment: “We are grateful for Pat’s commitment to Intel over these many years as well as his leadership. We will redouble our commitment to Intel Products and meeting customer needs. With our product and process leadership progressing, we will be focused on driving returns on foundry investments.“
Related: Intel Gets $7.86 Billion U.S. CHIPS Act Grant for New Factories
Challenges and Opportunities Ahead
Intel’s leadership transition comes at a time of heightened competition in the semiconductor industry. The company faces ongoing challenges in scaling production for advanced nodes and optimizing its foundry model to attract external clients. Holthaus’s elevation to CEO of Intel Products reflects Intel’s intent to centralize customer feedback and innovation in its operations.
With this reshuffle, Intel aims to simplify its operations, boost profitability, and solidify its position in the global semiconductor market. As Yeary pointed out, “With Dave and MJ’s leadership, we will continue to act with urgency on our priorities: simplifying and strengthening our product portfolio and advancing our manufacturing and foundry capabilities while optimizing our operating expenses and capital.”
