New boss, new broom! Intel Corporation's (INTC.US) newly-appointed CEO will streamline the leadership team and appoint a new AI chief.

Internal memoranda show that Intel Corporation's new CEO, Lip-Bu Tan, is streamlining the leadership team of the semiconductor giant, with the core chip division reporting directly to him. The memoranda show that the company has also promoted Sachin Katti, head of network chip, to Chief Technology Officer and AI Supervisor. This is Tan's first major move since taking over the reins last month, aiming to reverse the fortunes of the long-standing Silicon Valley chip maker. The data center and AI chip division, as well as the personal computer chip division, will now report directly to Tan, whereas before they were under the supervision of Michelle Johnston Holthaus, Chief Product Officer of Intel Corporation. "I hope to collaborate closely with the engineering and product teams to understand the requirements needed to strengthen solutions," Tan wrote in the memorandum. "As Michelle and I work together on this, we plan to gradually expand her scope of responsibilities, with specific details to be announced in the future." Tan pledged to make the legendary American chip company leaner, as this restructuring comes at a time when Intel Corporation has been experiencing prolonged turmoil. The former CEO resigned last year due to disagreements with the board over the company's transformation strategy, as Intel Corporation was struggling to deal with the consequences of years of manufacturing process errors and product strategy deviations. Its biggest challenge now is to compete with NVIDIA Corporation, which has become the dominant supplier in the field of AI chips. Under Tan's leadership, Intel Corporation is becoming increasingly focused on its "engineering DNA." Despite acquiring multiple AI chip startups, Intel Corporation has failed to develop a coherent strategy to challenge NVIDIA Corporation, and in January of this year, it put its latest attempt, the "Falcon Shores" chip project, on hold. The task of developing a new AI strategy will now fall on Katti. In an email, Tan stated that Katti "will expand his responsibilities to serve as the company's Chief Technology and AI Officer. In this role, he will lead our overall AI strategy and AI product roadmap, while also overseeing Intel Corporation Labs and the company's relationships with startups, developers, and ecosystems." The memorandum stated that Katti, who is also a professor at Stanford University, will take over from the retiring Greg Lavender. In recent years, the executive team at Intel Corporation has mostly consisted of business unit leaders, with technical leaders typically under the multiple layers of CEO management. Tan announced in the memorandum that three senior technical executives - Rob Bruckner, Mike Hurley, and Lisa Pearce - will report directly to him in the future. "This reflects our emphasis on transforming into an engineering-driven company, and will allow me to better understand the elements needed for market competition," Tan emphasized in the memorandum. He previously stated plans to reduce the company's management levels, encouraging closer collaboration between the executive team and engineers. "I am acutely aware that organizational complexity and bureaucratic processes are gradually suffocating the innovative culture we need to win," Tan pointed out in the memorandum. "Decisions take too long, new ideas lack nurturing space and resources, and unnecessary departmental barriers lead to low execution efficiency."