It’s news that’s got the tech world in an uproar: Pat Gelsinger, Intel’s CEO since February 2021, has decided to throw in the towel. The news, confirmed on December 2, 2024, took everyone by surprise.
Pat Gelsinger’s departure: a complete surprise
After starting at Intel in 1979, he rose through the ranks to become the company’s first CTO in 2001. He then left to head VMware, before returning to Intel as a savior in 2021. His mission: to revive the sleeping beauty. To do this, Gelsinger is asking for a free hand to deploy an ambitious strategy. He is launching the construction of new factories in the USA and Europe, with the idea of competing with TSMC and Samsung on their own turf. He also wants Intel to become a world-class foundry, manufacturing chips for other companies.
However, this ambitious strategy came up against the wall of the post-Covid crisis. The market was not kind to Intel under Gelsinger’s leadership. The share price plummeted by almost 50% in 2024. Investors have lost confidence, and financial results are at half-mast. Even the U.S. government reduced the subsidies initially earmarked for Intel, preferring to allocate funds to more promising projects.
Faced with this avalanche of bad news, Gelsinger preferred to bow out. In a statement, he says: “Leading Intel has been the honor of my life. I can look back with pride on all we have accomplished together.”
What about strategy?
Intel has appointed two co-CEOs for the interim: David Zinsner, current CFO, and Michelle Johnston Holthaus, who has been promoted to head the Intel Products Division. A strong duo to try and turn things around, until a new captain can be found.
The question on every enthusiast’s lips is: who will be foolish or brave enough to take over the reins of Intel in these tumultuous times, and what of the strategy Pat has been pursuing for years? This resignation will undoubtedly rekindle sales/merger speculation in the hours ahead.
