Appointed CEO of Intel in February 2021, Pat Gelsinger has just announced his departure a little over three years later without having really managed to turn around the electronic chip manufacturer. His successors have their work cut out for them to try to save the company. Let’s take stock.
Temporary replacements
After the boss’s unexpected resignation, Intel’s CFO, David Zinsner, and Intel’s product CEO, Michelle Johnston Holthaus, will serve as co-CEOs while the board appoints a new leader. For his part, Frank Yeary, independent chairman of the board of directors of Intel, will assume the role of interim executive chairman.
In a press release relayed by CNNthe latter was keen to comment on the news:
Although we have made significant progress in regaining the competitiveness of our production and developing the capabilities necessary to become a world-class foundry, we know that we still have much work to do in the business and we are determined to restore the investor confidence.
Among the priorities of the new management, the manager highlights the need to “simplify and strengthen our product portfolio and advance our manufacturing and foundry capabilities while optimizing our operating expenses and capital. We are working to create a leaner, simpler, more agile Intel company”.
Intel, a giant in difficulty
Intel has long been synonymous with success within Silicon Valley. This company had the lion’s share of the global computer chip market, with Intel chips integrated into PCs and Macs. Except that the situation changed with the arrival of smartphones and the company did not really know how to take this turn. The same goes for the AI wave which has greatly benefited Nvidia, but not really its rival.
Consequence: Intel suffered operating losses of $7 billion in 2023 and decided to lay off more than 15,000 employees last August. According to CNNthe company should try to evolve its business model with a view to manufacturing processors for competitors like Apple, which will place it in a market already very well occupied by Taiwanese firms like TSMC. In any case, it will be able to rely on the generous subsidies granted during the mandate of Joe Biden.
What to remember:
- Pat Gelsinger, who led Intel for three years, announced his resignation
- He failed to turn around this ailing company.
- The new management will try to relaunch itself by opting for a new commercial strategy
