Intel's CEO is abruptly ousted amid board turmoil
- Intel's board announced Pat Gelsinger's unexpected retirement as CEO, appointing two co-CEOs as interim leadership.
- Gelsinger's exit follows Intel's failure to effectively compete in the rapidly growing AI and mobile chip markets.
- The company's stock saw a temporary increase post-announcement, reflecting investor reactions to the strategic changes.
In the United States, Intel's board of directors announced the unexpected retirement of Pat Gelsinger as CEO, effective immediately. The decision came without a named successor, which has led to the appointment of two executives as interim co-CEOs. Gelsinger, who had been with the company for most of his career and served as CEO for three years, expressed bittersweet emotions in his statement regarding his departure. The move by Intel came after a period where the company struggled to keep pace with competitors in key markets like AI and mobile device chips, failing to deliver significant results despite a substantial financial commitment from the government through the CHIPS and Science Act. Following the announcement, Intel's stock initially surged by 5% before experiencing a decline, suggesting investor uncertainty about the company’s future direction. Gelsinger's removal from the board further signals a drastic shift in strategy, as typically, CEOs retain board positions after leaving, hinting at a serious acknowledgment of a failing strategy at Intel. This incident aligns with broader trends observed in 2024, where numerous companies have seen an increase in CEO dismissals due to growing impatience from boards regarding leadership performance. Gelsinger was not alone in being ousted without a successor; similar circumstances were noted at other companies like Peloton and Lattice Semiconductor, highlighting a common theme of executive instability in the current corporate landscape.