In his first major move since becoming Intel’s CEO a month ago, Lip-Bu Tan is reorganizing the company’s leadership structure, aiming to cut through what he describes as “organizational complexity and bureaucratic processes [that] have been slowly suffocating the culture of innovation we need to win.”
According to a memo obtained by Reuters on April 17, Tan announced sweeping internal changes to streamline decision-making, promote innovation, and boost operational efficiency across Intel’s core business units.
While the company declined to confirm the memo’s details, a spokesperson stated, “We continue to focus on fostering a culture of innovation across the company that empowers our engineering teams to create great products and delight our customers.”
Tan, a seasoned technology executive, said the changes come in response to Intel’s sluggish pace in adapting to the rapidly evolving semiconductor landscape. “It takes too long to make decisions. New ideas are not given room or resources to incubate. And unnecessary silos lead to inefficient execution,” he reportedly wrote.
Business Unit Leaders to Report Directly to the CEO
Among the most significant shifts, Intel’s two largest business units—the Data Center and AI Group and the Client Computing Group- will now report directly to Tan. This reverses a leadership structure introduced in December last year, which placed the business units under Intel Products CEO Michelle Johnston Holthaus.
Tan emphasized his desire for closer collaboration with these teams. “I want to roll up my sleeves with the engineering and product teams so I can learn what’s needed to strengthen our solutions,” he reportedly wrote.
Holthaus, who previously served as interim co-CEO, will remain CEO of Intel Products, with her role expected to evolve and expand over time.
The Data Center and AI Group are led by interim chief Karin Eibschitz Segal, who replaced Justin Hotard in February. Jim Johnson, who took over from Holthaus in December last year, continues to lead the Client Computing Group.
New CTO and AI Chief to Spearhead Strategy
Tan also announced that Sachin Katti, general manager of Intel’s Network and Edge Group, will assume the chief technology and AI officer role. Katti, who has led the group since early 2023, will now be responsible for Intel’s AI strategy, product roadmap, and Intel Labs, in addition to overseeing external partnerships with startups and third-party developers.
This appointment comes as Greg Lavender, hired as CTO in 2022 under former CEO Pat Gelsinger, retires from the company.
“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.
Katti brings deep technical credentials, including his ongoing tenure as a Stanford University professor and experience as co-founder and CEO of Kumu Networks.
Technical Executives Gain Direct Line to CEO
Further reinforcing his engineering-first focus, Tan said three technical executives—Rob Bruckner, Mike Hurley, and Lisa Pearce- will now report directly to him. Bruckner serves as CTO of client platform architecture, Hurley leads the Client Silicon Engineering Group, and Pearce oversees GPU and NPU hardware-software technology and client graphics.
By eliminating unnecessary layers and empowering engineering leaders, Tan aims to build a “new Intel” focused on innovation, speed, and execution.
“We fell behind on innovation,” he said at last month’s Intel Vision 2025 event. “You deserve better, and we need to improve, and we will.”
As Tan puts it, the road ahead is a “very challenging task,” but he is also determined to tackle everything head-on.
