Intel Shuffles Top Managers
By Jessica Davis -- EDN, July 20, 2006
Intel’s internal review has spawned some more reshuffling at the processor company – this time sweeping changes across the chipmaker’s executive management team in an effort to improve decision making.
The changes include the retirement of two executives and the elimination of the previous co-manager structure for some business units.
Intel announced the changes to employees Wednesday night and to the general public on Thursday.
"As part of the thorough analysis of Intel begun in April, we have examined the focus and structure of our top management level, including our use of 'two-in-a-box' co-managers," said Paul Otellini, president and CEO in a statement. "The moves announced today will help us speed decision making and bring new resources to bear in critical areas, while allowing me to spend more time on key strategic issues."
The Digital Home Group, Sales and Marketing Group and Mobility Group will all move to a single manager structure.
Intel will retain the two-in-a-box manager structure for some of its largest business units, including the Digital Enterprise Group, which will continue to be led by Pat Gelsinger, senior VP and Tom Kilroy, VP. Intel’s Technology Manufacturing Group will also retain the co-manager structure, led by Robert Baker, senior VP and William Holt, VP.
The “two-in-a-box” co-management structure was originated by Intel co-founder, Andy Grove, and described in his 1983 book High Output Management.
“The Technology Manufacturing Group is Intel’s largest organization in terms of employment,” a spokesman for the Santa Clara, Calif.-based chipmaker said.
The decision on whether to go with a single manager or two-in-a-box managers for each business unit will be made on a case-by-case basis, the spokesman said.
“In some cases two-in-a-box is more appropriate,” he said. One of the deciding factors is the size and scope of the organization, with larger organizations more likely to need two managers rather than just one.
The changes to the management team were also made “to find the best fit for the skills of our executives,” the spokesman said.
The management changes are effective immediately, and the new managers will assist senior management in its ongoing efficiency review of operations which so far has led to the elimination of 1,000 management jobs and the sale of the company’s handheld application processor business unit, eliminating another 1,400 jobs.
The placement of these new managers paves the way for further reorganization, including possible job eliminations further down in the organization.
Intel’s management changes announced today included the promotion of Sean Maloney to lead the company’s Sales and Marketing Group. Maloney, 50 is an executive VP who previously co-managed the company's Mobility Group. Maloney will also become Intel's chief sales and marketing officer. Some have speculated that Maloney is the likely eventual successor to CEO Otellini.
Donald MacDonald, who was previously VP and general manager of the Digital Home Group, will become vice president of Marketing and Brands, reporting to Maloney.
Senior Vice President David Perlmutter, 53, will continue as general manager of the Mobility Group. Anand Chandrasekher, 43, senior VP and former co-general manager of the Sales and Marketing Group, will manage a newly created business unit focused on low power Intel Architecture products and the ultra-mobile PC market. He will report to Perlmutter.
Eric Kim, 51, senior VP, who previously co-managed the Sales and Marketing Group, will become general manager of the Digital Home Group.
Retiring executives include 55-year-old William Siu, a 26-year Intel veteran who served as VP and general manager of the Channel Platforms Group. Richard Wirt, 63, is also retiring. He has 25 years of service and is VP, senior fellow and co-general manager of the Software and Solutions Group. Both of these executives will remain full time with Intel through the end of the year to best manage their organizations' transitions. With the impending retirement of Siu, the Channel Platforms Group will report to Maloney in the Sales and Marketing Group. A general manager for the Channel Platforms Group will be named at a later date.
Renee James, VP and co-general manager of the Software and Solutions Group, will continue to manage the group following Wirt's retirement at the end of the year.
"I want to express my deep appreciation to Bill Siu and Richard Wirt for their numerous contributions and dedicated service to Intel over many years," Otellini said. "We thank them very much and wish them all the best in their retirement."
The management changes were announced to employees hours after the company's Q2 earnings release on Wednesday.
