Katanin functions by hydrolyzing ATP to provide the energy required for microtubule severing. The p60 subunit of katanin binds to the microtubules and uses the energy from ATP hydrolysis to break the bonds between tubulin subunits within the microtubule. This severing action results in the rapid disassembly of microtubules, which can then be reassembled as needed by the cell.