11:22 AM EST, 12/02/2024 (MT Newswires) -- Intel ( INTC ) said Monday that Chief Executive Pat Gelsinger retired on Sunday, while the chipmaker created a products CEO role as it works toward a leaner operating structure.

Gelsinger, who has been group CEO since 2021, also stepped down from the board. Shares of Intel ( INTC ) were up 3.7% in Monday trade. The stock has plummeted 50% year to date.

The company said Chief Financial Officer David Zinsner and newly named Intel Products head Michelle Johnston Holthaus will serve as interim co-CEOs while the board finds a permanent replacement. Frank Yeary, independent chair of the board, will become interim executive chair during the transition.

"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," Yeary said in a statement.

Intel Products includes the client computing group, data center and AI group, and network and edge group. Intel ( INTC ) said that the foundry leadership structure remains unchanged.

With Zinsner and Holthaus at the helm, Intel ( INTC ) will be focused on "simplifying and strengthening our product portfolio and advancing our manufacturing and foundry capabilities while optimizing our operating expenses and capital" to create a leaner structure, Yeary said.

In August, Intel ( INTC ) launched a $10 billion cost-cutting plan after reporting second-quarter results that were below Wall Street forecasts. The program included laying off more than 15% of the company's workforce.

In September, Intel ( INTC ) announced that it was turning its chipmaking foundry business into an independent subsidiary so that it could consider alternate sources of funding and optimize its capital structure to maximize growth. Last week, the company announced that it finalized $7.86 billion in direct funding through the Biden Administration's CHIPS and Science Act to advance Intel's ( INTC ) commercial semiconductor manufacturing and advanced packaging projects.

"It has been a challenging year for all of us as we have made tough but necessary decisions to position Intel ( INTC ) for the current market dynamics," Gelsinger said Monday.

Price: 24.96, Change: +0.91, Percent Change: +3.78