Intel's channel partners are expressing concerns and skepticism about Pat Gelsinger's sudden departure as CEO. The abrupt nature of his exit has raised questions about Intel's strategy and future direction.
According to a Bloomberg report, Gelsinger was forced to resign, suggesting a loss of confidence from Intel's board. Channel partners interpret this as doubt in Gelsinger's long-term vision.
“Obviously this is not good news, because Pat was the strategy. Michelle [Johnston Holthaus] is a seasoned leader... a good choice to co-lead the company. But obviously [Gelsinger’s sudden exit] is someone saying there’s doubt in the previous strategy.” — Erik Stromquist, Chairman of Beaverton
Gelsinger played a significant role in revitalizing Intel's foundry business and pushing for advancements in node technology. His optimism about a potential turnaround, driven by IFS's 18A process and progress in the consumer CPU segment, contrasts sharply with his abrupt exit.
Adding to the suspicion, an unnamed Intel distribution partner highlighted the unusual nature of Gelsinger's immediate departure, lacking the typical transition period:
“Usually, when somebody retires from Intel, there’s a much longer process...They announce that they’re retiring. They usually stay on for a transition period...not, ‘I’m retiring, and today’s my last day.” — Intel US distribution partner
Some analysts believe Gelsinger was made a scapegoat for Intel's recent struggles, including sluggish AI performance and declining market share in the CPU workstation segment. They argue that he wasn't given enough credit for the progress made during his four-year tenure.
With Gelsinger gone, Intel's future direction remains uncertain. The company will now face increased scrutiny as it attempts to regain momentum without being able to attribute blame to previous leadership.
