Intel Corp (NASDAQ:INTC) CEO Lip-Bu Tan has reportedly unveiled a significant leadership shakeup, aiming to streamline the company's operations and put artificial intelligence at the forefront of its strategy.
What Happened: In an internal memo, Tan announced that key chip groups within Intel, including the data center, AI, and personal computer chip divisions, will now report directly to him, reported Reuters.
Tan also appointed Sachin Katti, the company's networking chip chief, as the new Chief Technology and AI Officer, tasking him with overseeing Intel’s AI strategy and product roadmap.
"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.
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He also criticized Intel's previous bureaucratic culture.
“It's clear to me that organizational complexity and bureaucratic processes have been slowly suffocating the culture of innovation we need to win,” he said in the memo, adding, “It takes too long to make decisions. New ideas are not given room or resources to incubate. And unnecessary silos lead to inefficient execution.”
Why It's Important: The leadership reshuffle comes as Intel faces mounting pressure from competitors, particularly Nvidia Corporation (NASDAQ:NVDA), which has solidified its dominance in the AI chip market.
Tan, who took over as CEO last month, previously also shared the idea about revamping Intel’s operations and leadership while refusing to sugarcoat the company’s past performance.
Intel also faces new challenges with the U.S. imposing licensing requirements on AI chip exports to China, similar to those faced by Nvidia.
Price Action: Intel’s stock slipped 1.56% on Thursday, extending a broader decline that has seen shares tumble 46.95% over the past year. So far in 2025, the chipmaker is down 6.38%, according to Benzinga Pro.
Intel currently holds a growth score of 3.56% based on Benzinga Edge Stock Rankings. Click here to see how it stacks up against other leading players in the semiconductor space.
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