Less than a month into his new position, Intel CEO Lip-Bu Tan is already taking drastic action to reimagine the company’s leadership—and culture—with laser-like intensity to slash bureaucracy and spark innovation.
In a recent internal memo as quoted by Reuters, Tan disclosed a series of organizational shake-ups designed to speed up decision-making and restore the speed and agility that once positioned Intel as a reigning giant of the semiconductor business. His message was unequivocal: Intel needs to adapt, transform, and deliver quicker if it aspires to lead the future of technology.
“Organizational complexity and bureaucratic procedures have been incrementally strangling the culture of innovation we need to succeed,” Tan is quoted as having informed employees.
Here are the three significant leadership transitions Tan is undertaking to create what he refers to as “a new Intel.”
1. Business Units Now Report Directly to the CEO
As part of his effort to flatten layers and hasten strategic deliberations, Tan is reorganizing Intel’s reporting structure. Two of Intel’s most important business units—the Data Center and AI Group and the Client Computing Group—will have their leaders reporting to him.
This reorganization undoes a structure implemented last December during interim management, in which these groups reported to Michelle Johnston Holthaus, CEO of Intel Products. Holthaus will continue in her position, but her duties are likely to increase.
“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.
Data Center and AI Group is now headed by Karin Eibschitz Segal, with Jim Johnson in charge of Client Computing Group. Both the heads now directly report to Tan, highlighting his desire to remain tightly connected with core innovations.
2. Sachin Katti Named Chief Technology and AI Officer
In a move to focus Intel’s AI efforts, Tan has named current Network and Edge Group head Sachin Katti as the firm’s new Chief Technology and AI Officer.
Stanford University professor and ex-CEO of wireless technology startup Kumu Networks Sachin Katti will now set the overall direction for Intel’s AI strategy and product roadmap. He will also lead Intel Labs and deal with startups and third-party developers.
This change also sees the retirement of Greg Lavender, who was hired into the CTO position by previous CEO Pat Gelsinger in 2022.
Tan’s move to give Katti a broader role indicates a greater intent to infuse AI throughout Intel’s portfolio—a strategic shift required for competitiveness in an ever-advancing industry.
3. Technical Leaders Get Direct Access to the CEO
In another indication that engineering excellence will be the guiding principle of Intel’s turnaround, Tan stated that three of its most advanced technical executives will now report to him:
- Rob Bruckner – Corporate VP and CTO of Client Platform Architecture
- Mike Hurley – Corporate VP and GM of the Client Silicon Engineering Group
- Lisa Pearce – Corporate VP and GM of GPU/NPU Hardware-Software Tech & Client Graphics
This reinforces our focus on becoming an engineering-driven company and will provide me with insight into what it takes to compete and win,” Tan said.
These moves are intended to dismantle silos and make sure that key innovation leaders have a direct voice in the company’s strategic direction.
A New Era of Accountability and Innovation
Lip-Bu Tan isn’t sugarcoating the challenges ahead. Speaking candidly at the Intel Vision 2025 event last month, he acknowledged that Intel has fallen behind on innovation and must work hard to regain the trust of its customers and partners.
“It had been a difficult time for a long time for Intel. We lagged behind in innovation. Because of that, we have been too slow to evolve and to respond to your needs. You are owed better, and we must do better—and we will.”
Tan has encouraged Intel’s ecosystem to be “brutally honest” with their input. His first big actions as CEO demonstrate he’s willing to listen—and act—with urgency.
Whether these changes pay off is as yet to be seen. One thing is for sure, though: the new Intel under Lip-Bu Tan won’t be business as usual.
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