Gelsinger's retirement comes after a challenging period for Intel, with revenue from PC chips dropping 25% and the company losing valuable data center chip ground to rival AMD. The company also faced technical problems in its initiatives to transform into a chip manufacturer for other companies. Intel's revenue shrunk to $54 billion in 2023, down around a third from the year Gelsinger took over. The company has cut more than 15,000 jobs in a $10 billion cost-reduction plan, and paused or delayed construction on several chipmaking facilities. Intel posted a $16.6 billion quarterly loss in October, the biggest in its 56-year history, and is expected to lose $3.68 billion this year, its first annual net loss since 1986.
Key takeaways:
- Intel CEO Pat Gelsinger has retired and stepped down from the board of directors, with David Zinsner and Michelle Johnston Holthaus named as interim co-CEOs.
- Intel has faced significant challenges under Gelsinger's leadership, including a 25% drop in PC chip revenue, failed acquisition of Tower Semiconductor, and a record quarterly loss of $16.6 billion.
- Intel is considering selling its autonomous driving arm Mobileye and its enterprise networking division, with potential suitors including Qualcomm.
- Shares of Intel rose approximately 2.66% following the announcement of Gelsinger's departure.