Intel Restructures Leadership for Engineering Focus

Intel is reorganising its leadership structure under the new CEO, Lip-Bu Tan, who aims to enhance the company’s operations by directly overseeing crucial chipmaking divisions. This change marks Tan’s first significant action since his appointment last month. A company-wide memo viewed by Reuters indicates a move towards a flatter corporate structure, designed to quicken decision-making and sharpen Intel’s focus on engineering and innovation.

Key Promotions and Changes

As part of this organisational shift, Intel has elevated Sachin Katti, who currently leads the networking chips sector, to serve as Chief Technology and Artificial Intelligence Officer. Katti, who holds a professorship at Stanford University, will be tasked with steering Intel’s AI strategy, overseeing Intel Labs, and fostering relationships with external developers and startups. He takes over the position from Greg Lavender, who is retiring.

Focus on Engineering

In the memo, Tan expressed a desire to actively engage with engineering and product teams to deepen his understanding of what is required to enhance their solutions. He noted that the growing organisational complexity and bureaucratic processes were increasingly stifling the innovative culture crucial for success.

The AI and data centre chip division, along with the personal computing chip segment, will now report directly to Tan, eliminating an executive management layer. Michelle Johnston Holthaus, who previously managed these areas, will continue as CEO of Intel Products, with an evolving set of responsibilities.

Addressing Competition Challenges

This leadership adjustment occurs amidst ongoing challenges for Intel, particularly in the face of previous manufacturing errors and a declining competitive stance, especially in the AI chip market, now largely dominated by Nvidia. Earlier this year, Intel scrapped the Falcon Shores AI chip, a decision reflecting the company’s ongoing struggles to consolidate a robust AI strategy despite acquiring multiple startups.

Tan has committed to transforming Intel into a more streamlined and engineering-centric company. Three of its leading technical executives—Rob Bruckner, Mike Hurley, and Lisa Pearce—will now report directly to Tan. These reforms are crafted to boost innovation and simplify the decision-making processes.

New Government Affairs Leadership

In addition, Intel is on the lookout for a new Head of Government Affairs, a position that will also report to Tan, in response to escalating geopolitical challenges. The former officeholder, Bruce Andrews, left the role following the 2024 U.S. elections.

This leadership realignment marks a decisive shift towards prioritising engineering under Tan’s direction. He emphasised the need for Intel to reduce management layers and eliminate silos that obstruct innovation.