Despite Difficulties, Pat Gelsinger, CEO of Intel, Retires After 40 Years of Service
Pat Gelsinger (CEO of Intel) formally retired on December 1st of 2024 after a 40-year career in the computer sector. At 63, Gelsinger resigned from his leadership role and the board of directors marking the end of an era during a challenging period for Intel.
“Leading Intel has been the honor of my life,” Gelsinger said in his parting statement, expressing a range of emotions. “This company has played a great role in my life which has made today bittersweet day. I am incredibly pleased with everything we have achieved together.”
An Upsetting Period for Intel
Intel has faced some great challenges including a sharp 52% decline in its stock price over the last 12 months. Gelsinger’s departure followed a series of strategic missteps and a decline in market share particularly in its core industry and the rapidly expanding artificial intelligence space.
Gelsinger initiated with “This year has been tough for us all as we made the decisions that were hard but necessary to position Intel well for the market dynamics that are constantly evolving” .
Despite the difficulties, he expressed gratitude to his colleagues, saying, “I will always be grateful to the many collaborators worldwide who were part of my Intel journey.”
Performance Decline and Reorganization
Intel reported dismal quarterly earnings in August leading to the most severe stock sell-off in its history. The company initiated a significant reorganization as part of a $10 billion cost-cutting initiative including plans to lay off roughly 15% of its workforce.
Intel has announced the plans to spin off its foundry business into a distinct entity in September to attract the external fundings as an desperate effort to gain a competitive edge back. The company secured $7.86 billion in government funds to support its factory-building plans this week as a crucial step toward achieving its manufacturing objectives.
The Termination of Gelsinger’s Employment
On his final day, Gelsinger shared a reflective post on X (formerly Twitter) quoting Psalm 9:1:
“I am thankful to you Lord and with all my heart, I will tell of all your wonderful deeds.”
Insiders revealed that Gelsinger’s retirement was not entirely voluntary. The board grew impatient with the slow progress of his turn-around plan and offered him the choice to retire or be fired (according to reports). After three years as CEO, Gelsinger chose to retire.
Leadership Transition and Legacy
Frank Yeary as Intel’s independent board chair and interim executive chair following Gelsinger’s resignation said, “Pat started his career at Intel and returned at a critical time in 2021”. “He led fundings in the state-of-the-art semiconductor manufacturing as a leader and also brought our processes back to life and while also trying to persistently promote innovation throughout the whole organization.”
Despite the challenges at the conclusion of his tenure, Gelsinger’s work laid the foundation for Intel’s future goals in a rapidly evolving sector.