Intel CEO Patrick Paul Gelsinger announced his retirement on December 1st after a 40-plus year career, Intel announced.

Gelsinger rejoined Intel in 2021 and attempted to modernize the company's semiconductor manufacturing and boost innovation but the company's share price has plunged during his tenure.

The stock was trading above $68 a share in 2021 but was below $20 a share this year.

Intel's stock price was up 5% on Monday morning after the news of his retirement was announced.

Gelsinger's stepping down follows a year of challenging decisions, such as slimming down the company to cut costs which resulted in slashing its workforce by thousands after reporting a $1.6 billion quarterly loss.

Gelsinger acknowledged the tough choices he made.

"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," he said. "I am forever grateful for the many colleagues around the world who I have worked with as part of the Intel family."

The board appointed David Zinsner and Michelle Johnston Holthaus as interim co-chief executive officers while a search for a permanent successor begins.

The board praised Gelsinger's leadership saying he strengthened Intel's process manufacturing.

"On behalf of the board, I want to thank Pat for his many years of service and dedication to Intel across a long career in technology leadership," said Frank Yeary, the independent chair of the board. "As a leader, Pat helped launch and revitalize process manufacturing by investing in state-of-the-art semiconductor manufacturing, while working tirelessly to drive innovation throughout the company."

Earlier this month, Intel announced that its $7.86 billion in government subsidies restricted it from selling its stake in the chipmaking unit.

In September, the company signed an AI chip deal with Amazon, through Foundry, a separate subsidiary.