Facing one of the toughest periods in its history, Intel's CEO Pat Gelsinger has announced his resignation. The company had initiated a significant restructuring plan to regain its position in the market.

Pat Gelsinger decided to step down during a crucial time when Intel was undergoing transformative changes. He also resigned from his role on the company's board of directors.

According to a company statement, CFO David Zinsner and Intel Products CEO Michelle Johnston Holthaus will temporarily assume joint CEO roles while the board searches for Gelsinger’s successor. Zinsner, who is currently Intel's CFO, and Holthaus, recently appointed as the CEO of Intel Products, oversee key divisions such as chips, AI, and networking solutions.

Meanwhile, Intel’s independent chairman, Frank Yeary, will serve as interim executive chairman. The company emphasized that there are no changes in the leadership structure of Intel Foundry Services.

Intel loses its leader

In his statement, Gelsinger said:

“Leading Intel has been the honor of my life. The people in this organization are among the industry’s best and brightest, and I’m proud to call them my colleagues. Today is undoubtedly bittersweet, as this company has been such a large part of my professional journey. I am proud of what we have achieved together. This year has been a challenging one for all of us as we made difficult but necessary decisions to align Intel with current market dynamics. I will remain forever grateful to my many colleagues around the world who have been part of my Intel family.”

Gelsinger joined Intel at the age of 18 and became the chief architect of the fourth-generation 80486 processor. At 32, he was the youngest vice president in the company’s history. As Intel's CTO in 2001, he spearheaded key innovations such as Wi-Fi, USB, and the Intel Core and Intel Xeon processor series.

Gelsinger led what he called the “boldest restructuring plan in Intel's history” to restore the company’s market dominance. However, Intel struggled to keep up in areas like AI-focused hardware, causing it to lose investor confidence. After leaving the company, Gelsinger became CEO of VMware in 2012 and returned to Intel in 2021 in an effort to revive the company.

Intel falls behind in competition

During a time of rising demand for AI-driven processors, Intel's product lineup failed to compete with its rivals. As a result, the company struggled to maintain its technological leadership and secure investor confidence.

Frank Yeary, Chairman of the Board, stated:

“We know there is still much work to be done, and we are committed to restoring investor trust. As a board, we understand the importance of placing our product group at the center of everything we do. Our customers expect this, and we are determined to deliver for them.”