In a significant shake-up for the tech industry, two major players, Intel and Dell, have announced the departures of key executives, signaling a period of strategic transformation and leadership transition.
A Major Departure at Intel
Michelle Johnston Holthaus, Intel's chief executive of products, is exiting the company after more than three decades of service. Her tenure included numerous senior leadership roles, most notably serving as interim co-CEO following the departure of former CEO Pat Gelsinger last year. Holthaus will remain with Intel in a strategic advisory capacity for the next few months to ensure a smooth transition.
Context of the Leadership Change
This departure follows a period of significant upheaval for the semiconductor giant. The news comes on the heels of the US government's purchase of a nearly 10% stake in Intel for $8.9 billion late last month. This move was preceded by public calls from former President Donald Trump for the current CEO, Lip Bu-Tan, to resign over alleged conflicts of interest related to Tan's chip businesses in China. Reports indicate that Trump later reversed his position after a meeting with the CEO at the White House.
Holthaus's exit marks the second major departure in recent months, following senior vice-president and chief strategy officer Safroadu Yeboah-Amankwah's departure in June.
Intel's Broader Restructuring and New Appointments
Under CEO Lip Bu-Tan, who took over in March, Intel has been aggressively pursuing a strategy to flatten its executive leadership, cut costs, and secure new customers. This restructuring is reported to include layoffs affecting more than 21,000 employees. In a memo to staff, Tan emphasized the need for Intel to become an "engineering-focused company" once again.
This strategic pivot has catalyzed a series of key internal promotions and external hires:
New Leadership in Engineering
To spearhead its renewed engineering focus, Intel is establishing a new Central Engineering Group. This critical division will be led by recent recruit Srinivasan Iyengar, now a senior vice-president and fellow. Iyengar joined from Cadence Design Systems, where he led global silicon engineering. His expanded role includes leading horizontal engineering functions and building a new custom silicon business to serve external customers.
Strengthening the Data Center Division
Kevork Kechichian has been appointed as executive vice-president and general manager of Intel’s data centre business. He brings over three decades of industry experience from leadership roles at Arm, where he was executive vice-president of engineering, as well as from NXP Semiconductors and Qualcomm.
Expanded Roles for Existing Executives
Naga Chandrasekaran, executive vice-president and chief technology and operations officer of Intel Foundry, is taking on new responsibilities. His role is expanding to include foundry services, aiming to create a more integrated structure that spans technology development, manufacturing, and go-to-market strategies. This follows the earlier consolidation of technology development and manufacturing under his leadership.
Furthermore, 40-year Intel veteran Jim Johnson has been formally appointed as senior vice-president and general manager of the Client Computing Group, after serving successfully in the role on an interim basis.
Leadership Transition at Dell
In a parallel development, Dell Technologies announced that its chief financial officer, Yvonne McGill, will step down from her role. McGill, a nearly 30-year veteran of the company, held various positions including CFO of the infrastructure solutions group and CFO of the Asia-Pacific, Japan, and China business before becoming CFO.
David Kennedy, senior vice-president of global business operations finance, will assume the role of interim CFO effective immediately while the company searches for a permanent successor. McGill will serve in an advisory capacity during the third quarter to assist with the transition.
These leadership changes at two of the world's largest tech companies highlight a dynamic period of restructuring and strategic realignment within the industry, as both Intel and Dell position themselves for future challenges and opportunities in a rapidly evolving market.
