Intel CEO resigns as chipmaker struggles with tough competition

Intel CEO Pat Gelsinger resigned Monday after a period in which the chipmaker suffered from unprecedented competition in the field of artificial intelligence.

Gelsinger took over the company in February 2021, and was tasked with strengthening the position of the famous American technology giant as it struggled with unprecedented competition, production delays and the departure of top talent.

But the opposite happened, as the company’s performance declined during his tenure, as it became clear that the company had missed another major technology wave despite billions of dollars in US government spending to support domestic chip manufacturing.

According to CNN, Intel’s stock rose by about 61% during Pat Gelsinger’s tenure, and the stock rose by 4% in pre-market trading.

The company announced last August that it would lay off 15% of its employees as part of an effort to cut $10 billion in costs, with the aim of radically changing the way it operates, according to Gelsinger at the time.

“While we have made significant progress in restoring manufacturing competitiveness and building capabilities to be a world-class foundry, we know we have much more work to do across the company and are committed to restoring investor confidence,” Frank Yeary, Intel’s independent chairman of the board, who was named interim CEO after Gelsinger’s exit, said in a statement. “We will continue to work with urgency on our priorities: simplifying and enhancing our product portfolio, and evolving our manufacturing and foundry capabilities while optimizing operating and capital expenditures. We are working to create a leaner, simpler, more agile Intel.”