The long-time Intel employee and the company’s CEO for four years has been forced out due to the board losing confidence in his turnaround plans. The board has handed control to two lieutenants as the faltering American chipmaking giant searches for the right choice for the position.
Gelsinger, who left on Dec 1, after a board meeting last week, decided that Gelsinger’s costly and ambitious plans to turn around Intel are not working, and the changes are not taking place at a pace desired by the board. A person familiar with the matter told Reuters that the board told Gelsinger to either retire or be removed and he chose to step down.
His departure comes well before the completion of his 4-year plan to restore the company’s ability to make the fastest and smallest chips in the world. A moniker has since been stolen by Taiwan Semiconductor Manufacturing Company (TSMC), which makes chips for Nvidia, Intel’s biggest rival.
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Although Gelsinger’s replacement has not yet been found, the board has named Chief financial officer David Zinsner and senior executive Michelle Johnston Holthaus, the company’s interim CEO. The board has formed a search committee for Gelsinger’s replacement.
Frank Yearly, independent chair in the board, said in a press release by the company, “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.”
