Key Takeaways
• Intel CEO Lip-Bu Tan has initiated a major leadership restructure, elevating technical leaders to report directly to him.
• The move aims to dismantle bureaucratic layers and foster a more innovation-driven, engineering-centric culture.
• Groups overseeing data center, AI chips, and PC processors will now bypass middle management and report directly to the CEO.
• Tan criticized Intel’s organizational complexity, stating it hindered decision-making and stifled new ideas.
Intel’s new CEO, Lip-Bu Tan, has launched a sweeping reorganization of the company’s leadership structure, marking his first major strategic action since assuming the role in March 2025.
In an internal company memo reviewed by Reuters and reported by the Hindustan Times, Tan outlined a plan to flatten Intel’s traditionally layered hierarchy to better align executive oversight with engineering priorities.
This shift comes after years of product delays, manufacturing inefficiencies, and competitive lag—particularly in the AI chip market—where rivals like Nvidia have surged ahead.
Engineering Leaders Elevated to Executive Status
Tan’s restructuring places several of Intel’s most senior technical leaders in direct contact with the CEO’s office, a move intended to reduce managerial friction and foster quicker decision-making.
• Rob Bruckner, Mike Hurley, and Lisa Pearce will now report directly to Tan.
• These executives previously held key technical roles under multi-layered management structures.
• The change bypasses traditional business unit reporting lines, streamlining accountability.
Tan emphasized this realignment is critical to Intel’s transformation into an engineering-focused organization.
“This supports our emphasis on becoming an engineering-focused company and will give me visibility into what’s needed to compete and win.”
Intel’s Strategic Units Report Directly to CEO
Alongside changes in individual reporting, Tan announced that the company’s data center, AI chip, and personal computing divisions—previously managed under separate business leads—will now also report directly to him.
This centralization is intended to bring leadership closer to the core technologies that define Intel’s future.
The groups had previously fallen under the purview of Michelle Johnston Holthaus, a long-time Intel executive.
The new reporting structure reinforces Tan’s vision of removing silos and ensuring Intel’s top executive has a hands-on understanding of the company’s most critical operations.
Cultural Overhaul: Breaking Free from Bureaucracy
Tan was blunt in his assessment of Intel’s internal culture. In the memo, he criticized the company’s structural inefficiencies and their impact on innovation and competitiveness.
“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 elaborated:
“It takes too long to make decisions. New ideas are not given room or resources to incubate. And unnecessary silos lead to inefficient execution.”
These statements underscore a key message: Intel’s new leadership is intent on removing procedural roadblocks that prevent the company from being responsive in a rapidly evolving semiconductor landscape.
Context: Intel’s Struggles and Transition
Tan steps into the role following the departure of Pat Gelsinger, who reportedly parted ways with the board over disagreements on how to revitalize Intel after years of underperformance.
Under Gelsinger’s tenure, Intel faced manufacturing node delays and struggled to mount a credible response to Nvidia’s dominance in AI.
Despite acquiring promising AI startups like Habana Labs and Nervana Systems, Intel was unable to consolidate these assets into a cohesive strategy.
The leadership change—and now, the restructuring—signal a renewed effort to clarify direction and strengthen execution.
Industry Outlook: A Critical Moment for Intel
Analysts and investors are likely to view Tan’s moves as a necessary intervention. The semiconductor industry is undergoing massive transformation, driven by AI, edge computing, and cloud demand.
For Intel to remain relevant, it must deliver competitive products on time—something that has eluded the company in recent years.
Tan’s immediate changes—particularly his focus on technical leadership and simplification—are broadly aligned with best practices seen in high-performance chip companies.
Whether this reset will be enough to change Intel’s trajectory remains to be seen, but the direction is clear: a leaner, faster, more engineering-focused Intel.
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