Intel’s newly appointed CEO, Lip-Bu Tan, is initiating a significant leadership shakeup aimed at streamlining operations and strengthening the company’s engineering focus. In a recent internal memo obtained by Reuters, Tan revealed that several of Intel’s core chip divisions will now report directly to him, flattening the organizational structure in a move designed to bring greater agility and responsiveness to the semiconductor giant.
Among the key changes, Sachin Katti—formerly head of Intel’s networking chip division—has been promoted to serve as both Chief Technology Officer and head of Artificial Intelligence. This dual role signals the growing importance of AI in Intel’s strategic roadmap, as the company seeks to reassert its position in a highly competitive global market. The data center and AI chip group, along with the personal computing chip group, are now under Tan’s direct supervision, bypassing previous layers of management.
These leadership adjustments mark the first major strategic shift since Tan took the helm last month. They reflect a hands-on approach to reforming Intel after years of stagnation and missed opportunities in advanced chip manufacturing. Michelle Johnston Holthaus, who previously oversaw the groups now reporting to Tan, remains a key figure as CEO of Intel Products. Her responsibilities will be expanded into new areas as part of a broader reorganization still in development.
“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. His remarks underline a more engaged leadership style, with a clear emphasis on execution and product innovation. The restructuring also comes as Intel continues to face challenges from competitors and grapples with maintaining its technological edge. Tan’s early moves suggest a decisive effort to simplify operations and refocus the company on its engineering roots.