Intel CEO Pat Gelsinger Resigns as the Company Continues to Battle and Tech Layoffs Intensify
There has been a massive leadership change at Intel as Pat Gelsinger has resigned from his position as the CEO of Intel due to the company’s multiple problems causing a series of tech layoffs. Gelsinger, who joined Intel in 2021, came under increasing pressure from the board after the firm’s stock price declined by as much as 61% within his time at the helm. In an attempt to redesign the situation, Intel tried to cut $10 billion at once and restructured its company, but it failed to compete with such leaders as Taiwan’s TSMC and Nvidia.
Board Pressure and Gelsinger’s Resignation
The announcement of Gelsinger’s resignation came shortly after a board meeting in which he was given a choice: either retire or be ousted. Gelsinger decided to retire, which put an early end to his four-year tenure as a CEO. After his resignation, Intel’s CFO David Zinsner, and EVP Michelle Johnston Holthaus will serve the company in an acting capacity as co-CEOs as the firm seeks to fill the position.
Effects of IT tech Layoffs on the Sector
Intel’s problems are further worsened by the increase in tech layoffs being experienced throughout the industry, with many firms such as Meta also cutting their workforce in a bid to cut on costs. For example, Meta – the parent company of Facebook – has laid off more than 21,000 employees since November 2022 as part of a more comprehensive effort aimed at using cost optimization as a lever to drive growth. Although Meta has recovered through a lift in its stock price, Intel’s restructuring plan has not been as successful.
Following the AI development and Intel competitors, the company has been struggling to adapt to the new technology.
Gelsinger’s departure also highlights Intel’s challenges in returning to growth in the rapidly changing chip industry, let alone with the added focus on AI. Nvidia was a relatively small player in the chip industry; now the company holds a great power with its AI-favorable GPUs. However, Intel, being an industry veteran, has not been able to effectively seize the AI opportunity that has been a key driver to the loss of market share.
Government Support and Intel’s Future
Nevertheless, Intel is willing to regain its position and relies on the help from the US government especially with such programs as the CHIPS Act to boost the manufacturing of chips in the United States. Even though Intel’s $8.5 billion grant was slightly cut, the organisation was provided with more funds for the further development of semiconductor production for the defence sector.
What Lies Ahead for Intel
Intel’s leadership change is a turning point for the company as other tech organizations face mass tech layoffs  and dynamic market environments. Its next CEO will have the unenviable task of steering the company through these choppy waters and trying to win back investors and regain a foothold in an increasingly competitive market.
