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Intel CEO Forced Out by Board After Loss of Confidence
Intel CEO Forced Out : Intel officially announced the retirement of CEO Pat Gelsinger.
The move comes as Gelsinger was purportedly given an ultimatum to either retire or be removed. He was forced out less than four years after taking the helm of the company, handing control to two lieutenants as the faltering American chip-making icon searches for a permanent replacement.
Intel CEO Forced Out Due To Low Value Returns
The clash came to a head last week when Gelsinger met with the board about the company’s progress on winning back market share and narrowing the gap with Nvidia Corp., according to people familiar with the matter.
He was given the option to retire or be removed, and chose to announce the end of his career at Intel, said the people, who asked not to be identified because the proceedings weren’t made public.
According to TechCentral, under Gelsinger, Intel, which was founded in 1968 and for decades formed the bedrock of Silicon Valley’s global dominance in chips, has withered to a market value more than 30 times smaller than Nvidia, the leader in artificial intelligence chips.
However, Gelsinger, has assured both investors and US officials, who are subsidising Intel’s turnaround, that his manufacturing plans remain on track. But the full results will not be known until next year, when the company aims to bring a flagship laptop chip back into its own factories.
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Intel Loses Its Position To Nvidia and Others
Shares of the company fell 0.5%. The stock has lost more than half of its value this year, and it was replaced last month by Nvidia on the blue-chip Dow Jones Industrial Average index. Rival AMD climbed 3.6%, as the PHLX Semiconductor Index rose 2.6%.
The company named chief financial officer David Zinsner and senior executive Michelle Johnston Holthaus as interim co-CEOs while its board conducted a search for a new CEO. The moves come less than a week after US officials gave US$7.9-billion in subsidies to Intel.
Frank Yeary, independent chair of the board, said in a release, “While we have made significant progress in regaining manufacturing competitiveness and building the capabilities to be a world-class foundry, we know that we have much more work to do at the company and are committed to restoring investor confidence.”
Relating to the forced retirement, Gelsinger said, “Leading Intel has been the honor of my lifetime. This group of people is among the best and brightest in the business, and I’m honored to call every one a colleague.”
“Today is, of course, bittersweet as this company has been my life for the bulk of my working career. I can look back with pride at all that we have accomplished together. It has been a challenging year for all of us as we have made tough but necessary decisions to position Intel for the current market dynamics. I am forever grateful for the many colleagues around the world who I have worked with as part of the Intel family.”
