Intel is once again on the hunt for a new figurehead to lead its struggling ship after CEO Pat Gelsinger was ousted. The decision comes as the board reportedly lost faith in his turnaround strategy for the iconic chipmaker, which has lagged behind in the ongoing AI boom as sales for the companies Gaudi AI accelerator has been lower than anticipated, as the company is set to fail its $500 million revenue target.
Gelsinger’s removal paves the way for Intel’s fourth CEO in just six years, following the lackluster leadership of Robert Swan and the notably problematic tenure of Brian Krzanich, whose decisions are largely blamed for the company’s current semiconductor struggles.
Pat Gelsinger’s removal as Intel CEO comes as no surprise, given the company’s dire situation. Their 13th and 14th Generation Core processors, part of the “Raptor Lake” lineup, have severely tarnished Intel’s reputation due to widespread reports of game crashes, system instability, and premature hardware failure.
For months, Intel shifted blame to AIB motherboard vendors, who were admittedly pushing unlimited power limits to enhance performance. However, Intel later admitted that their CPUs were subjected to excessive voltages, leading to silicon degradation and, in many cases, early chip death.
Consumers were left with few options: tolerate shorter lifespans, reduce performance by underclocking, or switch to AMD’s Ryzen processors, which now dominate the market. Adding to Intel’s woes, the newly released 15th Generation Core Ultra 200 Series “Arrow Lake” CPUs have regressed in gaming performance compared to their predecessors, all while AMD’s Zen 5 and X3D processors continue to raise the bar.
Under Gelsinger’s leadership, Intel initially planned to use their advanced 20A node for Arrow Lake, but the mobile-focused Lunar Lake chips were later announced to rely on TSMC’s silicon. This decision was puzzling, especially given Intel’s efforts to position their manufacturing arm as a competitive service provider, bolstered by substantial U.S. government subsidies for local production.
Eventually, Intel abandoned plans for the 20A node entirely, opting to instead fabricate Arrow Lake CPUs exclusively on TSMC’s costly N3 process.
Last week, Gelsinger met with Intel’s board and reportedly chose to retire rather than face dismissal, according to Bloomberg. While this might allow him to save face, his tenure leaves Intel at an all-time low.
The company’s semiconductor division has failed to deliver competitive products, with profits and prestige plummeting. Even their latest generation of CPUs, both desktop and mobile, now rely heavily on external manufacturing, a significant blow for a company once synonymous with cutting-edge in-house innovation.
Intel recently announced plans to lay off between 15,000 and 18,000 employees as part of a desperate cost-cutting effort, alongside halting the construction of new facilities in Germany and Israel. These drastic measures come during a period of severe financial strain for Intel, largely driven by its struggling semiconductor division, which has single-handedly dragged the company’s quarterly financial results into the red with multi-billion-dollar losses.
Other divisions within Intel have had to shoulder the burden to stabilize the company’s crumbling finances.
Following the announcement of these layoffs, now former CEO Pat Gelsinger turned to social media, sharing Bible verses during the ongoing corporate turmoil. Over the past year, Intel has seen its stock valuation plummet by 50%, compounded by the suspension of dividends as part of a $10 billion cost-reduction plan.
This move effectively removes a key incentive for investors to back the company, particularly as Intel continues to falter, with the disappointing release of Arrow Lake only worsening its position.
Intel has tapped CFO David Zinsner and client computing head Michelle Johnston Holthaus as interim co-CEOs while they search for someone brave, or desperate enough to take on the mess Pat Gelsinger left behind.
Gelsinger, who stepped in three years ago, promised to steer Intel away from its reliance on PCs and server processors, aiming to turn the company into a chip-making powerhouse on par with TSMC and Samsung. Intel didn’t even come close, if anything Intel has since lost its foothold in the server sector and the DIY PC market, and it’s only a matter of time before the last vestiges of its dominance, mobile slip away as well.
Gelsinger’s exit is déjà vu for anyone who watched him fumble the bag at VMware. This time, Intel’s decided they’ve had enough, tossing him aside as the company scrambles just to stay afloat in the PC market, let alone lead in innovation or performance.
After three years of mismanagement and missed goals, Intel’s now so far behind that some are wondering if this disaster was incompetence or straight-up sabotage. Either way, Gelsinger’s legacy at Intel will be defined by little more than delusional marketing ploys, laughable self-owns, relentless PR disasters, and monumental financial failures.
