Intel is undergoing a transformation under the direction of its new CEO, Lip-Bu Tan, who is reorganising the company’s leadership framework and directly overseeing crucial chipmaking units. This marks Tan’s first significant decision since assuming leadership last month. In a comprehensive memo viewed by Reuters, Tan announced the plan to create a flatter corporate hierarchy to expedite decision-making processes and enhance Intel’s commitment to engineering and innovation.
In this restructuring initiative, Intel has elevated Sachin Katti, the current leader of networking chips, to the position of Chief Technology and Artificial Intelligence Officer. Katti, who is also a faculty member at Stanford University, will take charge of advancing Intel’s AI initiatives, overseeing Intel Labs, and fostering collaboration with developers and startup companies. Katti takes over from Greg Lavender, who is retiring.
Tan’s memo indicated a hands-on approach, stating the desire to work closely with engineering and product teams to gain insights into strengthening Intel’s solutions. It has become apparent to Tan that complexity within the organisation and bureaucratic hurdles have been gradually stifling the innovative culture necessary for success.
The data centre and AI chip division, along with the personal computing chip sector, will now report directly to Tan, bypassing an additional layer of executive management. Michelle Johnston Holthaus, who previously managed these sectors, will continue as CEO of Intel Products, with her roles expected to evolve.
This leadership shake-up comes as Intel confronts several years of manufacturing challenges and a declining competitive position, especially in the realm of AI chips, where Nvidia leads the market. Earlier in the year, Intel scrapped its Falcon Shores AI chip project, perceived as a reflection of the firm’s difficulties in establishing a coherent AI strategy despite numerous acquisitions.
Tan has committed to transforming Intel into a more streamlined, engineering-centric organisation. Three of the company’s leading technical figures—Rob Bruckner, Mike Hurley, and Lisa Pearce—will now report directly to Tan. These alterations are designed to enhance innovation and simplify the decision-making process.
These efforts align with the goal of fostering an engineering-focused environment, as Tan remarked that visibility into the team’s needs is essential for competing effectively.
Additionally, Intel is on the lookout for a new Head of Government Affairs, a position that will also report to Tan amidst growing geopolitical challenges. The previous incumbent, Bruce Andrews, left following the 2024 U.S. elections.
The leadership restructuring at Intel signals a determined shift towards prioritising engineering under Tan’s guidance, advocating for the reduction of management layers and the dismantling of barriers that obstruct innovation.