Intel CEO Pat Gelsinger announced that he is leaving his position as of December 1, 2024. In the statement made by the company, it was stated that Gelsinger also left his position on the board of directors. Gelsinger, who has been working at Intel for more than 40 years, returned as CEO in 2021 and tried to take important steps to get the company out of its crisis. However, recent developments show that these efforts do not yield results as expected.
Gelsinger’s departure came after a critical meeting with the board of directors, according to Bloomberg. At the meeting, Intel’s weakening position against Nvidia and strategies to regain market share were discussed. After this meeting, Gelsinger was advised to choose between retirement or dismissal. He also chose to retire.
Intel’s difficult years and future strategies
Gelsinger’s return in 2021 was seen as a ray of hope for Intel. At the time, the company’s problems inherited from previous CEO Bob Swan included delays in product launches, a decline in customer confidence and the technology gap with competitors. It is known that Gelsinger has determined an aggressive strategy with the aim of regaining leadership in areas where Intel is strong. However, the failure to benefit sufficiently from the rapid growth in the artificial intelligence-focused chip market and the disruptions in technology development processes were the biggest obstacles to this strategy.
Intel’s shortcomings, especially in artificial intelligence chips, have become even more obvious with the rise of Nvidia. In 2023, while Nvidia strengthened its leading position in the artificial intelligence market, Intel could not make the expected breakthrough in this field. Although important projects in the field of chip production and development were initiated during Gelsinger’s leadership, the results of these projects did not emerge at the expected pace.
On the other hand, the launch of Intel’s new Arc GPUs and Core Ultra processor series did not have the expected impact. Robert Hallock, the company’s general manager of AI and technical marketing, openly admitted that product launches “did not go as planned.” These developments once again revealed that Intel, under Gelsinger’s management, could not quickly adapt to the changing dynamics of the market.
During Gelsinger’s tenure, comprehensive measures were taken to strengthen Intel’s financial structure. In 2023, the company announced an operating loss of $ 7 billion and laid off 15,000 employees worldwide with the aim of reducing costs. During this period, the construction of ongoing semiconductor factory projects in Poland and Germany was stopped. Intel also continued its restructuring efforts by receiving $8 billion in government support for new factories in Arizona, New Mexico, Ohio and Oregon.
In addition to these changes, Intel’s decision to spin off its chip manufacturing business into a separate company was also considered an important turning point. However, this strategy was not enough to solve the company’s short-term financial problems, and its stock performance fell short of investor expectations.
Following Gelsinger’s departure, Intel’s chief financial officer, David Zinsner, and Intel Product CEO, Michelle Johnston Holthaus, will serve as interim CEOs. While these two will fill the company’s leadership void, the board will continue its search for a new CEO. Frank Yeary, Intel’s independent chairman, will serve as interim chief executive officer.
Meanwhile, although rumors have emerged that Qualcomm is considering acquiring Intel, Qualcomm CEO Cristiano Amon has denied these claims. Amon said, “We have not identified a necessary major acquisition,” and stated that the company will remain committed to its current strategic goals.
Intel must consider leadership change and structural transformation processes as an opportunity to regain its strong position in the technology world. The company has critical goals, especially to increase its competitiveness in the artificial intelligence market and to rapidly develop next-generation chip technologies. To achieve these goals, it needs to both rebuild the internal culture and regain customer trust.
During his decades at Intel, Pat Gelsinger led the development of many important technologies such as Wi-Fi, USB, and Core processors. However, the difficult times the company went through increased the pressure on leadership skills. What path Intel will follow in the coming period continues to be an issue that not only the company but the entire technology industry follows carefully.