When Pat Gelsinger came back to Intel, there was hope that he had what it took to turn the company around. Yet past blunders were too much to overcome, even for Gelsinger.

It's being reported today by Bloomberg that Intel CEO Pat Gelsinger's ambitious three-year effort to restore the 56-year[1]old American chipmaker to its former glory has faltered amid strategic blunders, manufacturing setbacks, and deepening financial losses, forcing the company to lay off 15,000 employees and fundamentally restructure its operations.

Under Gelsinger's watch, Intel's revenue has plummeted to $54 billion in 2023, nearly one-third below when he took charge in 2021. The company now faces its first annual net loss since 1986, with analysts expecting a $3.68 billion deficit this year, Reuters has learned. The stock has crashed 66% from its peak during Gelsinger's early months as CEO.

"This is painful news for me to share," Gelsinger wrote in a memo to employees. "Our revenues have not grown as expected — and we've yet to fully benefit from powerful trends, like AI.

Intel CEO Pat Gelsinger's ambitious three-year effort to restore the 56-year[1]old American chipmaker to its former glory has faltered amid strategic blunders, manufacturing setbacks, and deepening financial losses, forcing the company to lay off 15,000 employees and fundamentally restructure its operations. For more, read the full Bloomberg report.

From Press Release: "Intel Corporation today announced that CEO Pat Gelsinger retired from the company after a distinguished 40-plus-year career and has stepped down from the board of directors, effective Dec. 1, 2024. 

Intel has named two senior leaders, David Zinsner and Michelle (MJ) Johnston Holthaus, as interim co-chief executive officers while the board of directors conducts a search for a new CEO. Zinsner is executive vice president and chief financial officer, and Holthaus has been appointed to the newly created position of CEO of Intel Products, a group that encompasses the company’s Client Computing Group (CCG), Data Center and AI Group (DCAI) and Network and Edge Group (NEX). Frank Yeary, independent chair of the board of Intel, will become interim executive chair during the period of transition. Intel Foundry leadership structure remains unchanged.

The board has formed a search committee and will work diligently and expeditiously to find a permanent successor to Gelsinger.

Yeary said, “On behalf of the board, I want to thank Pat for his many years of service and dedication to Intel across a long career in technology leadership. Pat spent his formative years at Intel, then returned at a critical time for the company in 2021. As a leader, Pat helped launch and revitalize process manufacturing by investing in state-of-the-art semiconductor manufacturing, while working tirelessly to drive innovation throughout the company.” Read the full Intel Press Release here.