Intel’s new CEO, Lip-Bu Tan, has started making big changes just weeks after stepping into the role. According to an internal memo seen by Reuters, Tan is flattening Intel’s leadership structure. This means fewer layers of management and more direct communication between top executives and engineers.
AI and Tech Expert Sachin Katti Gets a Big Promotion
As part of the new changes, Sachin Katti has been promoted to Chief Technology and AI Officer. Katti previously led Intel’s networking chip division. Now, he will guide Intel’s overall AI strategy, oversee Intel Labs, and manage relationships with startups and developers.
Key Chip Divisions Now Report Directly to the CEO
Intel’s data center and AI chip teams, along with the personal computer chip group, will now report straight to Tan. Before, these groups were managed by Michelle Johnston Holthaus. She remains a key executive at Intel and will be given new responsibilities in the future.
Lip-Bu Tan Wants to Work Closely With Engineers
Tan shared in his memo that he plans to be hands-on with Intel’s engineering and product teams. He believes this is necessary to improve Intel’s products and performance. He also hinted at expanding Michelle Johnston Holthaus’s role further down the line.
A Company in Need of a Turnaround
Intel has been facing tough times, especially with the rise of Nvidia in the AI chip market. The company has struggled with product delays and manufacturing problems for years. Tan’s leadership changes are seen as a way to bring new energy and direction to the company.
Intel’s AI Strategy Gets a Fresh Start
Intel has acquired several AI chip startups but has not yet found a clear strategy to compete with Nvidia. In January, Intel dropped its latest AI chip project called Falcon Shores. Now, Sachin Katti will take over and lead the development of Intel’s future AI plans.
Leadership Changes Include Key Departures
Katti replaces Greg Lavender, who is retiring from Intel. In addition, Bruce Andrews, Intel’s former government affairs chief, also left after the 2024 U.S. elections. Intel is currently searching for a new leader for its government affairs division, who will also report to CEO Tan.
Government Ties More Important Than Ever
With rising global tensions and trade issues, Intel’s connection to governments around the world is critical. Tan’s venture capital background includes investments in China, making government relations a key area for the company to manage carefully.
Technical Experts Move Closer to the Top
Tan is also bringing three senior technical experts — Rob Bruckner, Mike Hurley, and Lisa Pearce — to report directly to him. This move is meant to emphasize Intel’s renewed focus on engineering excellence.
Cutting Bureaucracy to Boost Innovation
Tan believes Intel’s innovation has been held back by too many layers of management and slow decision-making. He wrote that the company must cut unnecessary processes and allow new ideas to grow. This is part of his broader mission to bring back a culture of innovation at Intel.
Intel’s new leadership style under Lip-Bu Tan shows a serious push to rebuild the company’s reputation in the competitive chip market. With a leaner structure, more direct decision-making, and a clear focus on AI, Intel is aiming to catch up with rivals and lead the next generation of semiconductor technology.
