Intel CEO Pat Gelsinger resigns after more than 3 years of tumultuous tenure
On Monday, tech-giant Intel announced that its CEO Pat Gelsinger had resigned following a tumultuous tenure at the company.
Since he took over the company in February 2021, the company’s stock has plunged 61%, and the company announced in August that it would be laying off 15% of its staff. The layoffs came as part of measures to slash $10 billion in costs.
Gelsinger’s resignation was effective Dec. 1, according to the press release from Intel.
“Leading Intel has been the honor of my lifetime – this group of people is among the best and the brightest in the business, and I’m honored to call each and every one a colleague,” Gelsinger said in the press release.
Intel said Gelsinger would be replaced by interim co-CEOs David Zinsner, Intel’s chief financial officer, and Michelle Johnston Holthaus, general manager of Intel’s client computing group.
Intel’s stock rises following announcement
Following the announcement of Gelsinger’s stepping down, the company’s stock rose 5.8% on Monday, Reuters reported.
Intel had been facing troubles in terms of the stock market. On August 2, company shares sank 26% in one day, marking their worst day since 1974. It came after a disappointing forecast and an announcement that it would lay off a significant portion of its staff.
Intel and the CHIPS Act
Last week, the company also announced that the $8.5 billion grant awarded by the Biden administration in March as part of the CHIPS Act was being reduced by more than $600 million dollars to $7.86 billion. This reduction came after Intel announced that it would be delaying the opening of some new chip plants.
Fernando Cervantes Jr. is a trending news reporter for Paste BN. Reach him at fernando.cervantes@gannett.com and follow him on X @fern_cerv_.