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Intel’s Leadership Overhaul Under New CEO Lip-Bu Tan

SAN FRANCISCO (Reuters) – Intel’s newly appointed CEO, Lip-Bu Tan, is initiating a significant restructuring of the company’s leadership framework by streamlining its management hierarchy, as indicated in a memo shared with Reuters. Important divisions within the semiconductor giant will now report directly to Tan.

In a notable move, networking chip leader Sachin Katti has been elevated to the roles of chief technology officer and head of artificial intelligence, according to the memo.

This leadership shakeup marks Tan’s first substantial decision since assuming the role last month, as he seeks to revitalize the iconic Silicon Valley firm following a series of operational challenges. Both the data center and AI chip division, along with the personal computer chip division, will now report directly to Tan, a shift from their previous oversight under Michelle Johnston Holthaus. Holthaus continues to serve as the chief executive of Intel products, with plans to broaden her responsibilities.

In his memo, Tan emphasized his hands-on approach, stating, “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 noted that as he and Holthaus drive their initiatives forward, her role will evolve with additional information to be provided later.

This transformation comes as part of Tan’s commitment to create a more efficient version of Intel, which has experienced considerable turbulence over the past few years. The previous CEO departed amid conflicts with the board regarding strategies for rejuvenating the company following multiple manufacturing and product setbacks. A key challenge involves countering the rising dominance of Nvidia in the AI chip market.

Challenges in the AI Sector

Despite acquiring multiple AI chip startups, Intel has struggled to define a cohesive strategy that effectively positions it against Nvidia, leading to the shelving of its recent project, the Falcon Shores chip, in January. The responsibility for developing a new AI approach now falls to Katti.

Tan’s memo outlines Katti’s additional responsibilities, stating he will oversee the overall AI strategy, product roadmap, Intel Labs, and collaborations with the startup and developer ecosystems. Katti, a Stanford University professor, will succeed Greg Lavender, who is retiring from Intel.

Additionally, Intel is in search of a new head of government affairs to report directly to Tan, highlighting the increasing importance of this role in navigating the complexities of global relations. The former head, Bruce Andrews, exited the company after the November elections, following a tenure that included serving under President Barack Obama.

The new appointee will manage Intel’s interactions with governmental entities in both the U.S. and international arenas, particularly in light of recent tariffs imposed by the Trump administration on China—where Tan’s investment fund holds significant stakes.

Restructuring for Innovation

Tan’s recent leadership team revisions involve promoting technical leaders to positions that allow for more direct communication with him. Notably, veteran executives Rob Bruckner, Mike Hurley, and Lisa Pearce will now report to Tan, supporting the shift towards an engineering-centric corporate culture.

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

Tan has publicly asserted his intention to reduce layers of management within the company, fostering a closer relationship between executive leadership and engineering teams. He identified organizational complexity and bureaucratic barriers as inhibiting factors to innovation, stating, “It’s clear to me that organizational complexity and bureaucratic processes have been slowly suffocating the culture of innovation we need to win.” He further expressed the need for a more agile decision-making process that allows new ideas to flourish and be adequately supported.

Source
finance.yahoo.com