Intel CEO Pat Gelsinger has resigned, and David Zinsner and Michelle Johnston Holthouse have been named interim CEOs.
Gelsinger, whose career spans more than 40 years, also stepped down from the company’s board of directors. He joined Intel in 1979 and was its first CTO. He returned to Intel as an executive in 2021.
On Monday, Intel said it would be looking for a new CEO.
Zinsner is executive vice president and chief financial officer of Intel. Holthouse was appointed to the newly created role of CEO of Intel Products, which includes the Client Computing Group, the Data Center and Artificial Intelligence Group, and the Network and Edge Group.
Frank Yery, Intel’s independent chairman, will become interim executive chairman.
“Pat spent his formative years at Intel before returning at a critical time for the company in 2021,” Yerry said in a statement. “As a leader, Pat helped launch and revitalize the manufacturing process by investing in state-of-the-art semiconductor manufacturing while working tirelessly to drive innovation throughout the company.”
Last week it became known that The Biden administration The plans to cut part of Intel’s $8.5 billion in federal funding to make computer chips across the country, according to three people familiar with the grant, who spoke on condition of anonymity to discuss private conversations.
The cuts are largely a byproduct of the $3 billion that Intel also receives to supply computer chips to the military. President Joe Biden announced a grant agreement Intel with up to $8.5 billion in direct financing and $11 billion in loans in March.
The changes in Intel’s funding are unrelated to the company’s financial performance or milestones, people familiar with the grant told The Associated Press. In August, the chip maker announced it would cut 15% of its workforce – about 15,000 jobs – in an attempt to turn its business around to compete with more successful rivals such as Nvidia and AMD.
Unlike some of its competitors, Intel manufactures chips in addition to designing them.
Shares of the Santa Clara, Calif.-based company jumped more than 4% in premarket trading.
