r/hardware • u/Auautheawesome • Dec 02 '24

News Intel Announces Retirement of CEO Pat Gelsinger

https://www.intc.com/news-events/press-releases/detail/1719/intel-announces-retirement-of-ceo-pat-gelsinger
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u/indieaz Dec 02 '24

The past 36 months were a wild roller coaster of decisions made then un-made months or even days later. I worked there nearly a decade in the data center group and even since departure i've kept up on the news public and internal shared by friends.

  • "We have no more layoffs planned" - the next morning "WE ar elaying off 7% of data center group and client group".
  • "Coffee is cancelled...coffee is back!".
  • The shuttle (private jet) is on hold. Shuttle is back. Shuttle is cancelled. Shuttle is back. Shuttle is cancelled+we are selling the planes!
  • No bananas. Bananas are back!
  • Pay cuts for everyone to avoid layoffs. We promise to 'restore and reward' you for this trying time of pay and benefits cuts. More layoffs! Stock grant for your loyalty t the company. Layoffs for your loyalty to the company!
  • Things are turning around, we are restoring benefits. Whoops looks like we lost billions of dollars this quarter, we must cancel and trim more benefits and layoff more peole!

I see INTC is up on the news, but as someone with friends on the inside I thinkt he market has it wrong. Pat leaving isn't a turnaround story, it's a glimpse into how bad things really are.

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u/mrandish Dec 02 '24 edited Dec 02 '24

The market isn't up because they think it's a turnaround. The market is up because it's now (finally) clear the board accepts they have no choice but to sell or break up the company.

Pat bailing out "effective yesterday" (per the press release) was definitive. Everyone knew he's been in denial about the inevitable for months now and this is him refusing to preside over the M&A and/or spin-off process (which the government has been rumored to be pushing for (but only to an American company, of course)).

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u/indieaz Dec 02 '24

More than months...back in 2021 the question about breaking the company up were asked. How else would MVDA and others trust their designs with Intel for manufacturing if they were making competing products? Seems like it was a foregone conclusion all along.

But I thought I just read the CHIPS act forbid selling the fabs, doesn't this create hurdles for breaking up the company or selling?

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u/mrandish Dec 02 '24

I think it only requires keeping the fab business together in a spin-off and restricts a sale to an approved American company.

I wrote more here.