Intel Stock Finishes Lower After Company Says CEO Has Retired
Key Takeaways
News that chip giant Intel (
INTC
) will get a new CEO set the embattled chip maker’s shares in motion Monday, with the stock finishing the day marginally lower as the company sought to reassure investors that things might improve after a punishing year.
The company on Monday said Pat Gelsinger stepped down, effective Sunday, with Intel naming two interim leaders and starting its search for a permanent replacement. The stock rose early, then changed direction, finishing the day down 0.5%.
Intel said it named David Zinsner, its
CFO
, and Michelle “MJ” Johnston Holthaus, who has been given the new title of Intel Products
CEO
, its co-CEOs on an interim basis. Holthaus held a number of titles prior to becoming co-CEO, including Chief Revenue Officer. Intel has formed a search committee to find a permanent replacement, the company said.
“It has been a challenging year for all of us as we have made tough but necessary decisions to position Intel for the current market dynamics,” Gelsinger said in a statement.
CEO Swap Comes Amid Turnaround Effort, Layoffs
Intel shares had lost
roughly half their value
through last week’s close amid a difficult turnaround effort. Intel has cut thousands of jobs and sold
pieces of some assets
as it has
fallen behind
some chipmaking rivals that have seen
sales and share price gains
this year.
In August,
the company reported
a wider-than-expected
net loss
for the second quarter and said it would lay off roughly 15% of its workers as part of a $10 billion cost-cutting plan. The announcement was also followed by
weeks of speculation
about
rumored investments
and
potential offers to acquire
the struggling chipmaker, some of
which have subsided
.
“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,” board chair Frank Yeary said Monday.
In its last earnings report at
the end of October
, Gelsinger said Intel was making “solid progress” on the turnaround plan, but acknowledged that the company still has “a lot of work in front of us.”
UPDATE: This story has been updated with additional context and the closing share price.
