Struggling semiconductor manufacturer Intel announced on Monday that its CEO Pat Gelsinger is retiring with an immediate effect. The news was well-received among investors, sending Intel’s stock up by 3.5% in pre-market trading.
Gelsinger took over as Intel’s CEO in 2021. At the time, the decision was received with praise, considering his status as a company veteran and experience in the industry. However, his tenure will likely remembered as one of the worst periods in the company’s history.
During Gelsinger’s time in charge, the chipmaker went from being an industry leader to being an afterthought in the market focused on artificial intelligence chips dominated by rival Nvidia. The company’s stock also fell by more than 60% during that period and was removed from the Dow Jones Industrial Average, which lists the leading U.S. stocks.
Intel will adopt a co-CEO structure for the time being, with David Zinsner, the company’s CFO, and Michelle Johnston Holthaus, CEO of the Intel Products division, taking over on an interim basis. Meanwhile, the company’s board already started the search for a new permanent CEO.
“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,” interim executive chair Frank Yeary said in a statement. “We are working to create a leaner, simpler, more agile Intel.”
Intel previously made several moves in an attempt to turn around its performance. It reduced its workforce by 15% and initiated several other cost-cutting measures, struck a five-year deal with AWS, and revealed plans to set up its Intel Foundry as an independent subsidiary. However, these moves have yet to yield positive results.