After a $17 billion loss in Q3, Intel CEO Pat Gelsinger steps down, as the company restructures with 16,500 layoffs and new interim leadership to drive recovery.
On Sunday, Pat Gelsinger retired as Intel’s CEO after nearly four years in the role. This decision came after repeated crises; the company reported an almost $17 billion net loss in Q3 2024.
Following his departure, Intel appointed CFO and EVP David Zinsner and Intel Products CEO Michelle Johnston Holthaus as interim co-CEOs, as it looks for a permanent replacement.
Besides, Frank Yeary, the independent chair of Intel’s board, will also serve as interim executive chair.
During his tenure, Gelsinger led efforts to restructure Intel’s manufacturing business and introduced an ‘internal foundry’ model to save the company billions. Despite these efforts, Intel’s manufacturing unit posted a loss of $5.8 billion last quarter.
Gelsinger, who previously worked at Intel from 1979 to 2009, including as the company’s first CTO, played a key role in revitalising the company’s semiconductor manufacturing.
Intel is currently executing a restructuring plan that involves laying off 16,500 employees globally, including in California, Arizona, Oregon, and Texas. Yeary stated that while the company has made progress in improving manufacturing and building a top-tier foundry, there is still much work to be done to restore investor confidence.
Yeary also acknowledged Gelsinger’s contributions in his statement, noting his tireless efforts to drive ‘innovation’ in the company. According to reports, Gelsinger’s total compensation in 2023 was approximately $16.9 million, including a base salary of $1.1 million.
