Intel promotes Bryant, discusses layoffs

By Colleen Taylor, Contributing Editor -- Electronic News, 10/17/2007

Industry-leading MPU maker Intel Corp. announced Tuesday that it has appointed Stacy J. Smith as its CFO, succeeding long-time CFO Andy Bryant. The appointment is effective immediately.

Bryant -- Intel’s chief financial and enterprise services officer since 1998 and Intel's CFO for 13 years, making him Intel’s longest standing CFO -- will not be leaving the company. Instead, he has been named to the new position of chief administrative officer (CAO) at Intel.

As one of his last acts as CFO, Bryant announced on Intel’s Q3 call that the Santa Clara, Calif.-based company had cut some 2,000 employees in the quarter, bringing Intel’s headcount down to about 88,000 as part of the company’s long term cost reduction plan that began in 2006. Looking to Q4, Bryant said 2,000 more employees will be laid off.

“We expect head count to be a little lower than we originally planned [by end of year]. Essentially [we are] a little ahead in terms of headcount reduction,” he said on the call, noting that Intel's previously projected cuts placed headcount in the low 90,000 range at the end of 2007. “The lower [Q3] headcount is a sequential decrease of more than 2 percent and a year-to-year decrease of nearly 12 percent. Total headcount by the end of the year should approach 86,000, down from 94,000 at the end of 2006.”

Bryant further said that Intel will continue its cost cutting measure to remain competitive and to hit its goal of $1 billion in savings next year. Smith has been an active part of Intel’s cost reduction plan since its start last spring. The new CFO has served as assistant CFO for 18 months, managing Intel's financial operations alongside Bryant during that time. Smith, a 19-year company veteran who joined Intel with an MBA from the University of Texas, has also served as Intel's chief information officer and as the general manager of Intel's Europe, Middle East and Africa region. He will continue to report to Bryant.

"Andy Bryant is one of the most respected financial officers in the world," Paul Otellini, Intel president and CEO, said in a statement. "I am extremely pleased that we will be able to focus Andy on a broader set of tasks within the company while giving Stacy more responsibility."

Wall Street watchers at Lehman Brothers expressed approval of the executive shift. In a research note sent this morning, Lehman analysts said that "investors are likely to be encouraged that veteran Andy Bryant will remain as CAO."

Investors have also been encouraged by the Q3 results Intel posted on Tuesday afternoon. The company reported record Q3 revenue of $10.1 billion, up 15 percent year-over-year and up 16 percent from Q2. Meanwhile, the company's net income of $1.9 billion was a 43 percent boost from Q3 2006 and a 46 percent boost sequentially.

This morning, Intel's stock opened at a share price of $26.78, up 5.1 percent from Tuesday's closing price of $25.48. Within the first hour of trading today, Intel's share price hit a new 52-week high of $26.98.

Electronic News news editor Suzanne Deffree contributed to this story.