On Monday, Intel Corp. INTC announced new executive changes as CEO Lip-Bu Tan works to streamline operations and reassure investors following the U.S. government’s unprecedented move to take a 10% stake in the chipmaker.
Veteran Products Chief Departs After Three Decades
Michelle Johnston Holthaus, Intel’s head of products and a 30-year company veteran, will step down after holding multiple leadership roles, including a stint as interim co-CEO after Pat Gelsinger’s ouster in 2024.
Intel said she will remain a strategic adviser during the transition.
New Hires And Expanded Roles
Kevork Kechichian, formerly Arm Holdings, Inc.’s ARM executive vice president of engineering, will join Intel as executive vice president and general manager of the data center group.
Srinivasan Iyengar, a senior vice president, will lead a newly created central engineering group tasked with building a custom silicon business.
Naga Chandrasekaran, Intel Foundry’s chief technology and operations officer, will expand his role to include Foundry Services.
Jim Johnson was named general manager of the client computing group.
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Trump Declares 10% US Stake In Intel
The leadership shuffle follows last month’s announcement by President Donald Trump that the U.S. government now owns and controls 10% of Intel, valued at roughly $11 billion.
Intel confirmed the deal included $8.9 billion in investments funded through unpaid CHIPS Act grants and the Secure Enclave program.
Trump, however, has also called for Tan’s resignation over alleged conflicts of interest.
SoftBank Group SFTBF SFTBY also invested $2 billion in Intel through a primary stock issuance, giving the Japanese conglomerate just under a 2% stake.
Intel Plans 31% Workforce Cut Amid $18.8 Billion Losses
In July, following the release of Intel’s second-quarter results, Tan informed staff in a memo that the company plans to shrink its headcount to 75,000 by year-end through a mix of layoffs and natural attrition.
This would mark a 31% reduction compared to the 108,900 employees the chipmaker had at the close of last year.
The latest moves come as Intel struggles with steep foundry losses, reporting an $18.8 billion shortfall in 2024 despite $8.5 billion in U.S. subsidies.
The company’s 18A process technology continues to lag behind rivals Taiwan Semiconductor Manufacturing Co. TSM, Advanced Micro Devices Inc. AMD and Arm Holdings.
Price Action: Intel shares slipped 0.04% Monday but gained 0.21% after hours, according to Benzinga Pro.
Benzinga’s Edge Stock Rankings show that INTC continues to demonstrate a strong trajectory over short, medium and long-term periods. Additional performance details are available here.
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