Shares rose 4.6% following the announcement, though the company’s stock remains down significantly. Gelsinger, who has spent four decades at Intel, became CEO in 2021 to reinforce the company’s market position. However, Intel has been overtaken by rivals like Taiwan’s Semiconductor Manufacturing.

During his tenure, Intel saw a major revenue decline of $24 billion from 2020 to 2023 and posted a record $16.5 billion loss last quarter. As a result, Gelsinger initiated cost-cutting measures, including plans to reduce the workforce by 15%, or about 15,000 jobs. Intel’s struggles were highlighted when it was replaced by Nvidia on the Dow Jones Industrial Average after 25 years.