Leadership Overhaul at Intel

Intel Corp. announced a significant shake-up in its executive ranks on Monday, with the departure of Michelle Johnston Holthaus, who served as chief executive of its products division. This move comes amid ongoing efforts by new CEO Lip-Bu Tan to revitalize the beleaguered chipmaker, which has faced intense competition and operational challenges. Holthaus, a 30-year veteran at Intel, had been elevated to the products CEO role less than a year ago, following a period as interim co-CEO after Pat Gelsinger’s abrupt retirement in late 2024.

The changes extend beyond Holthaus’s exit. Intel is establishing a new central engineering group tasked with designing custom chips for external customers, a strategic pivot aimed at bolstering its foundry business. This initiative reflects Tan’s vision to separate Intel’s manufacturing operations into an independent subsidiary while prioritizing its core x86 CPU businesses, as reported in various industry updates.

Key Appointments and Realignments

In the reshuffle, Intel named Kevin O’Buckley as the new head of its foundry services, bringing experience from Marvell Technology Group Ltd. Meanwhile, Naga Chandrasekaran, formerly of Micron Technology Inc., will lead manufacturing and supply chain operations. These appointments signal a fresh infusion of external talent to address Intel’s production woes, including delays in advanced chip technologies.

Additionally, the company is reorganizing several divisions, with a focus on streamlining its client computing and data center groups. According to details from TechCrunch, this includes the creation of dedicated teams for AI and edge computing, underscoring Intel’s push to catch up in high-growth areas where rivals like Nvidia Corp. have dominated.

Context of Intel’s Turnaround Efforts

Holthaus’s departure is particularly notable given her long tenure and recent prominence. She stepped in as interim co-CEO alongside CFO David Zinsner after Gelsinger’s exit, which was detailed in posts on X (formerly Twitter) from users like tech analyst Ian Cutress, highlighting the sudden nature of that transition. Tan, who took the helm in March 2025 after serving on Intel’s board, has been aggressive in restructuring, including plans to sell a stake in its Altera programmable chip unit.

The broader context reveals Intel’s struggles with market share erosion and manufacturing setbacks. A Reuters report from July 2025 noted Tan’s exploration of shifts in the foundry business to offer cutting-edge technology to outsiders, a departure from Intel’s traditional integrated model. This leadership flux arrives as Intel grapples with cost-cutting measures and a stock price that has plummeted amid fierce competition from Taiwan Semiconductor Manufacturing Co. and others.

Implications for Intel’s Future

Industry insiders view these changes as critical for Intel’s survival in a rapidly evolving semiconductor sector. By centralizing engineering for custom chips, Intel aims to attract more foundry clients, potentially generating new revenue streams. However, challenges remain, including stabilizing its core PC and server chip businesses, as emphasized in a Reuters article on the executive announcements.

The departure of Holthaus, one of Intel’s top female executives, also raises questions about diversity in leadership, with the company’s chief legal officer now the only remaining woman in the C-suite, per insights from The Verge. As Tan intensifies his turnaround strategy, observers will watch closely for signs of progress, such as improved chip yields and competitive AI offerings.

Market Reactions and Outlook

Market reaction was muted, with Intel shares showing little movement in after-hours trading, reflecting investor caution amid ongoing uncertainties. Publications like SiliconANGLE have described the reshuffle as a necessary step to address foundational issues in Intel’s structure.

Looking ahead, Tan’s leadership will be tested by the need to execute on these changes swiftly. With new executives in place, Intel hopes to regain momentum, drawing on lessons from past overhauls documented in sources such as CNBC’s coverage of Tan’s initial plans. Success here could reposition Intel as a formidable player in global chip production, but failure risks further erosion of its once-dominant position.