- Intel CEO Pat Gelsinger steps down amid board frustrations over slow progress in catching up to rivals.
- Interim co-CEOs take charge as the company cuts 15% of its workforce and scales back European expansion plans.
- The chipmaker’s $7.9 billion CHIPS Act award underscores its strategic importance despite financial struggles.
A Forced Exit for Gelsinger
Pat Gelsinger’s departure from Intel was anything but voluntary. After more than 40 years with the company, the CEO was pushed out by a board increasingly impatient with the sluggish pace of Intel’s turnaround, particularly in advanced chip manufacturing. "The board wanted faster results," said a person familiar with the matter, speaking on condition of anonymity. Gelsinger’s exit, effective December 1, 2024, marks the end of an era for a leader who once symbolized Intel’s hopes for revival.
Interim Leadership and Cost-Cutting Measures
With Gelsinger gone, Intel has turned to CFO David Zinsner and Michelle Johnston Holthaus as interim co-CEOs. The company is also slashing 15% of its workforce and shelving plans for new chip facilities in Europe—a stark reversal from earlier ambitions. These moves come as Intel’s stock price languishes at half its peak value, reflecting investor skepticism about its ability to compete with TSMC, Samsung, and Nvidia. "The cuts are painful but necessary," an industry analyst noted. "Intel’s R&D spending hasn’t translated into market gains."
Government Lifeline and Long-Term Uncertainty
Despite its struggles, Intel remains a linchpin of U.S. semiconductor policy. A $7.9 billion CHIPS Act award, including $1.5 billion for an Ohio fab, highlights its role in domestic production. Yet the road ahead is fraught. "The next CEO will inherit a company at a crossroads," said another source. "Can Intel reclaim its edge, or will it keep playing catch-up?" For now, the chip giant’s fate hinges on finding permanent leadership—and proving it can deliver on long-promised breakthroughs.