Intel's CEO Steps Down, Signaling Chip Giant's Shifts

Intel has seen some big changes just recently. The company's long-time CEO, Pat Gelsinger, has left the scene after over 40 years. A surprise announcement came this Monday, naming two other executives, David Zinsner and Michelle Johnston Holthaus, as temporary co-CEOs while they look for a new leader. This change comes as Intel faces tough times, especially since they've been outshone by rivals like Nvidia in the AI chip market. Gelsinger's journey at Intel started way back in 1979, making him one of the company's longest-serving figures. He even returned as CEO in 2021 after a stint away. On his exit, he remarked that Intel has been his life's work and that tough decisions were made to adapt to current market challenges. Zinsner, currently Intel's chief financial officer, and Holthaus, who recently took the helm of the Intel Products group, are now steering the ship till a new CEO is found. Frank Yeary, the board's independent chair, has also stepped in temporarily as executive chair. Intel used to rule the semiconductor world but has since been overshadowed. Their latest financial report showed a significant loss, and their stock has dropped by about 60% since Gelsinger took over. They've also planned to cut 15% of their workforce, which is about 15, 000 jobs, to save money. Trade-wise, Nvidia recently took Intel's spot on the Dow Jones Industrial Average. Unlike some competitors, Intel makes chips and designs them too. They've been working on expanding their U. S. foundry business to make semiconductors designed by other firms. The U. S. government has also been supporting this effort with billions in funding to reduce reliance on Asian suppliers. Gelsinger had kicked off big plans after taking over, like building a $20 billion chipmaking facility in Ohio and expanding in Europe. However, last week, the U. S. government reduced its promised funding to Intel for these projects. News of Gelsinger's departure caused Intel's stock to leap in early trading but ended the day slightly down.