Intel CEO Lip-Bu Tan overhauls leadership, elevates AI focus with strategic shakeup

Intel’s new CEO, Lip-Bu Tan, is streamlining the company’s leadership structure and placing key chipmaking groups under his direct supervision, marking his first major move since taking the helm last month. In a company-wide memo seen by Reuters, Tan outlined a flattening of the corporate hierarchy intended to accelerate decision-making and sharpen Intel’s focus on engineering and innovation.

As part of the overhaul, Intel has promoted Sachin Katti, the current head of networking chips, to the role of Chief Technology and Artificial Intelligence Officer. Katti, who is also a professor at Stanford University, will now be responsible for driving the company’s AI roadmap, Intel Labs, and external developer and startup engagement. He replaces Greg Lavender, who is retiring.

“I want to roll up my sleeves with the engineering and product teams so I can learn what’s needed to strengthen our solutions,” Tan wrote in the memo. “It’s clear to me that organisational complexity and bureaucratic processes have been slowly suffocating the culture of innovation we need to win.”

Intel’s data centre and AI chip group, along with its personal computing chip division, will now report directly to Tan, bypassing a layer of executive management. Michelle Johnston Holthaus, previously overseeing these groups, will remain CEO of Intel Products, with her responsibilities set to evolve.

The reshuffle comes as Intel grapples with years of manufacturing missteps and a slipping competitive edge, particularly in AI chips, where Nvidia now dominates. Earlier this year, Intel cancelled its Falcon Shores AI chip, a move seen as emblematic of the company’s struggle to solidify a unified AI strategy despite multiple startup acquisitions.

Tan has pledged to make Intel a leaner, more engineering-focused firm. Three of the company’s top technical leaders—Rob Bruckner, Mike Hurley, and Lisa Pearce—will now report directly to him. The changes are aimed at accelerating innovation and simplifying the decision-making pipeline.

“This supports our emphasis on becoming an engineering-focused company and will give me visibility into what’s needed to compete and win,” Tan stated.

Intel is also searching for a new Head of Government Affairs, a role that will also report to Tan amid increasing geopolitical complexities. The previous officeholder, Bruce Andrews, departed after the 2024 U.S. elections.

The leadership reshuffle signals a sharp pivot toward engineering-first priorities under Tan, who said Intel must “trim layers of management” and break down silos that hinder innovation.