Intel CEO Gelsinger steps down after failed turnaround plan, sparking search for replacement

From Investing.com: 2024-12-02 12:26:04

Intel CEO Pat Gelsinger steps down after less than four years due to failed turnaround plan. Board felt progress was too slow and costly. Company lost lead in chipmaking to Taiwan Semiconductor. Interim CEOs named as board searches for replacement. Shares rose 4.1% after news. Intel’s market value is now 30 times smaller than Nvidia’s.

Gelsinger assured investors that manufacturing plans remain on track, but results won’t be known until next year. Intel lost over half its value this year and was replaced on the blue-chip index by Nvidia. Search committee formed for new CEO. Communications chief also planning to leave the company.

Gelsinger’s turnaround plan focused on becoming a major contract manufacturer for others, but lack of progress led to tension on the board. Spending spree on new factories and workforce coincided with market collapse, leading to layoffs and potential asset sales. Analysts say new leadership is needed for Intel’s recovery.



Read more at Investing.com: Intel CEO Gelsinger forced out after board lost confidence in turnaround plan By Reuters