Intel shakes up leadership as CEO pushes turnaround plan

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Photo:Reuters

Intel, one of the world’s biggest chipmakers, has announced major changes in its top leadership team at a time when the company is facing serious challenges. The reshuffle comes as CEO Lip-Bu Tan works on a big plan to fix the company’s problems and bring it back to global strength.

Long-time Executive Michelle Johnston Holthaus Steps Down

One of the most notable exits is Michelle Johnston Holthaus, Intel’s product chief, who will leave the company after more than 30 years of service. During her long career, she held several high-level roles and even served as interim co-CEO after the sudden removal of former CEO Pat Gelsinger last year.

Although she is stepping down, Holthaus will continue as a strategic adviser for the company for the next few months, ensuring a smooth transition. Her exit marks the end of an era, as she was considered one of Intel’s most experienced leaders.

New Leadership Appointments

Along with her departure, Intel has introduced several new appointments to strengthen its business:

* Kevork Kechichian has joined as Executive Vice President and General Manager of the Data Center Group. He brings years of experience from global chip companies, having previously worked at Arm, Qualcomm, and NXP Semiconductors.

* A new Central Engineering Group has been set up, which will be led by Srinivasan Iyengar. His expanded role will also focus on building a custom silicon business to serve different customers worldwide.

* Naga Chandrasekaran, currently the Executive Vice President and Chief Technology and Operations Officer of Intel Foundry, will now also oversee Foundry Services, combining both operations for smoother growth.

* Jim Johnson has been appointed as the General Manager of Intel’s Client Computing Group, which is one of the most important parts of Intel’s consumer products business.

Restructuring Under CEO Lip-Bu Tan

Reports suggest that CEO Lip-Bu Tan is planning to flatten Intel’s leadership system so that most of the company’s important groups report directly to him. This will reduce bureaucracy, cut unnecessary costs, and allow faster decision-making.

As part of this restructuring, Intel is also cutting jobs in some areas to make the company more efficient. This is considered a bold but necessary step to compete better with global rivals in the chip industry.

U.S. Government’s Role in Intel’s Future

Adding to the uncertainty, the U.S. government is deeply involved in Intel’s future. President Donald Trump recently announced that the government will take a 10% stake in Intel, making it one of the rare cases where the U.S. will directly invest in a private company.

However, Trump has also openly called for Lip-Bu Tan to resign over what he described as conflicts of interest. Intel, on the other hand, has warned that government ownership could harm its international sales and affect future global funding opportunities.

This situation has created a tense environment for Intel, as the company tries to balance political pressures while also fixing its business strategy.

Why These Changes Matter

Intel has long been a leader in the global semiconductor industry, but in recent years, it has lost ground to competitors like TSMC, Samsung, and others. The demand for advanced chips has increased worldwide, especially for artificial intelligence, data centers, smartphones, and automotive technology.

By bringing in fresh leadership and restructuring its business units, Intel is aiming to:

* Regain its position in the competitive global chip market.

* Speed up innovation in data centers and custom silicon products.

* Build stronger partnerships with external clients through its Foundry Services.

* Respond quickly to changes in global technology demands.

Looking Ahead

The coming months will be critical for Intel. The company must not only manage its internal restructuring but also handle the political and financial implications of the U.S. government’s stake. Investors, employees, and global partners will be closely watching how CEO Lip-Bu Tan navigates this high-pressure situation.

The departure of a long-serving leader like Holthaus and the arrival of experienced executives from other global tech companies signal that Intel is serious about transformation. Whether this strategy will succeed remains to be seen, but it is clear that Intel is entering a new chapter in its history.

Intel, Lip-Bu Tan, Michelle Johnston Holthaus