Intel Corp's new chief executive, Brian Krzanich, has launched a
sweeping company reorganization and created a unit aimed at growing its
market share in mobile technology.
The shakeup, announced internally
just days after the 30-year veteran took the helm, places most of the
main product groups of the world's top chipmaker directly under the
CEO's supervision and hands its sprawling global manufacturing operation
to new president Renee James, said a source close to the company, who
declined to be identified.
Details of the reorganization were
outlined in an internal memo sent to employees on Monday. It was
described to Reuters by a company source and details of the
reorganization, which is effective immediately, were confirmed by
spokesman Chuck Mulloy on Tuesday.
"As your CEO I am committed to
making quick, informed decisions. I am committed to being bolder, moving
faster, and accepting that this means changes will be made knowing that
we will listen, learn and then make adjustments in order to keep pace
with a rapidly changing industry," Krzanich said in the email, according
to the source.
"Our business faces significant challenges, and we
simply must continue to execute while finalizing our future strategy,"
he reportedly wrote.
Krzanich officially took over as CEO last
week and said that under his leadership, the top chipmaker will be more
responsive to customers in an intensified focus on the fast-growing
smartphone and tablet market where it lags rivals.
main product groups - including the PC client group, mobile
communications and data center unit that previously reported to Intel
Architecture group chief Dadi Perlmutter - now report directly to
After Perlmutter transfers his business groups, he and
Krzanich will "define his next significant contribution at Intel,"
according to the email described by the source.
Intel has called
the shots in the personal computer industry for decades, but it was slow
to react to the explosion of smartphones and tablets. The latter two
markets are now dominated by competitors like Qualcomm Inc and Samsung Electronics Co Ltd, which design their chips using architecture licensed from ARM Holdings Plc .
his three-decade career at Intel, Krzanich has become known for making
fast decisions after consulting with trusted lieutenants.
This week's reorganization is Krzanich's first step in a process aimed at making Intel more focused and more agile, Mulloy said.
Mike Bell will head up Intel's newly formed "new devices" group," which Mulloy said will focus on emerging product trends.
new devices organization is responsible for rapidly turning brilliant
technical and business model innovations into products that shape and
lead markets," Krzanich said in the email, according to the source.
formerly head of the software arm, will now also oversee the company's
sprawling global manufacturing operations and all aspects of security
Mulloy said Intel presidents have traditionally been responsible for managing the manufacturing operations.
will also lead corporate strategy and planning. Her previous job as
Intel's software chief has been taken over by Doug Fisher, a senior
executive from that group.
Hermann Eul previously shared
responsibility for Intel's mobile communications group, which makes
smartphone chips, with Bell, and he will now take full responsibility
for that business.
Senior Intel executives in the past have
privately warned against focusing too much on catching up in smartphones
and tablets at the expense of missing out on future trends in mobile.
Krzanich's creation of the "new devices" group signals he is also looking beyond today's gadgets.
a matter of what they do with the new division, what can they identify
and then deliver that maybe would not have otherwise been something we'd
see Intel inside of. It could be very meaningful if they can execute,"
said Williams Financial analyst Cody Acree.
Venture capital fund
Intel Capital, led by Arvind Sodhani, now reports to Chief Financial
Officer Stacy Smith instead of to the CEO. Intel's IT department, which
reported to Krzanich before his appointment as CEO, will also now report
Shares of Intel were up 0.2 percent at $24.13 on Tuesday afternoon on the Nasdaq.
© Thomson Reuters 2013