Intel ousts CEO of Products as part of the latest executive shake-up, ending 30-year career — company also establishes new custom chip design unit

Intel has removed its chief executive officer of products, Michelle Johnston Holthaus, as part of a major shake-up of the executive branch of the embattled chip firm, according to Reuters. This is part of new CEO Lip-Bu Tan's plan to reshape the company under his leadership, flattening the leadership structure so he makes more of the important decisions about day-to-day operation.

Since joining Intel in March this year, CEO Lip-Bu Tan has been a controversial figure. He's presided over mass firings and had to walk a fine line with shareholders, executives, and the U.S. administration, after his ties to Chinese businesses came to light. But in his short time at Intel he's made sweeping changes, laying off hundreds of engineers and chip designers, killing Intel's automotive division, and cutting middle management in chip fabrication teams.

Holthaus is the latest high-profile figure at Intel to get the axe, ending a 30-year career at Intel, but a mere 10 months in her CEO of products role, and a temporary position as co-CEO after the previous CEO, Pat Gelsinger, suddenly left in 2024.

"Throughout her incredible career, Michelle has transformed major businesses, built high-performing teams and worked to delight our customers," Tan said in a statement. "She has made a lasting impact on our company and inspired so many of us with her leadership. We are grateful for all Michelle has given Intel and wish her the best."

Intel has said Holthaus will remain with the company in an advisory role, but her position will not be filled by anyone else.

What Intel is doing, though, is bringing in executives from elsewhere, including one who worked at Tan's previous endeavour, Cadence. Srinivasan Iyengar joined the company in June and will take on the role of head of a new central engineering division.

This group will focus on developing a new custom silicon business for external customers. Although Intel's fabrication business has been one of its worst-performing in recent years, and there are still talks of it selling large portions of it, it's found a new lease of life following U.S. government investment and Bu Tan's leadership.

With Iyengar's new role, though, it's possible we'll see Intel designing chips for customers, rather than merely producing them. That could see it compete against the likes of Broadcom and Marvell. With Tan pushing for a faster, leaner business overall, Iyengar will report directly to him in his new role.

Intel also announced that it had acquired the services of former executive vice president of solutions engineering at Arm, Kevork Kechichian. He'll begin heading Intel's datacenter group, and brings years of experience at ARM, NXP Semiconductor, and Qualcomm.

All of this comes at a both turbulent and rather bizarre time for the company. It has recently secured swifter funding as part of the CHIPS Act under the Trump administration's restructuring of how that fund works. But to get it, Intel had to agree to give the government a 10% stake in the company.

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