Intel’s new CEO Lip-Bu Tan is wasting no time making sweeping changes at the semiconductor giant. In a significant leadership restructuring, Tan is flattening Intel’s management hierarchy, allowing key chip groups to report directly to him, according to an internal memo seen by Reuters.

The shake-up also sees the promotion of networking chip leader Sachin Katti, who will now serve as Intel’s Chief Technology Officer (CTO) and head of Artificial Intelligence. This move highlights Intel’s sharpened focus on AI, an area increasingly critical to the company’s growth strategy as competition in the chip industry intensifies.

Tan’s changes come just weeks after he officially took the reins at Intel, signaling his intent to streamline decision-making processes and drive innovation more aggressively. By cutting layers of management, Tan aims to foster quicker communication and empower Intel’s technical teams.

“Speed, innovation, and clear accountability will be the foundations of the new Intel,” Tan wrote in the memo. He emphasized that the company must adapt rapidly to meet the evolving demands of AI, cloud computing, and advanced semiconductor manufacturing.

Under the new structure, leaders of Intel’s Client Computing Group, Data Center and AI Group, Foundry Services, and other critical sectors will all have a direct line to the CEO. This realignment is designed to remove bureaucratic bottlenecks and increase operational efficiency.

Sachin Katti’s appointment as CTO and AI chief also signals Intel’s intent to integrate AI advancements deeply across all product lines. Katti, who joined Intel in 2021, has been a pivotal figure in Intel’s networking innovations and will now be responsible for setting the technical direction for AI-driven initiatives companywide.

Intel has faced mounting pressure over the last few years as rivals like Nvidia and AMD have gained ground, particularly in high-performance computing and AI. Tan’s restructuring aims to help the company recapture its leadership position by making it more agile and innovation-driven.

In addition to the organizational changes, the memo indicated that Intel will also focus more heavily on partnerships and ecosystem building, especially in AI and next-generation chip technologies.

The announcement has already sparked strong reactions internally, with employees hopeful that the streamlined structure could reignite Intel’s reputation as a global tech leader.

Tan’s bold first moves suggest a clear vision for Intel’s future, one where flatter hierarchies, faster innovation cycles, and a deep focus on AI technology define the company’s path forward.

Intel is expected to unveil more details about its new strategic roadmap during its next earnings call.