Intel Shuffles Top Executives

Intel Corp. is reassigning five top executives to new positions as part of a corporate restructuring designed to simplify the company's management, according to a memorandum circulated to employees late Wednesday.

The moves, which are effective immediately, will reduce the number of senior managers reporting to Chief Executive Paul Otellini by two. The reassignments come as Intel is nearing completion of a comprehensive 90-day review of its operations that's designed to save the company $1 billion in annual costs by rooting out inefficiencies and underperforming businesses.

Intel spokesman Robert Manetta declined to comment.

Executive Vice President Sean Maloney, who has been co-manager of the company's mobility group, will lead Intel's sales and marketing group, according to the memo, which was obtained by The Associated Press. Maloney's new group, which is responsible for Intel's entire product portfolio, had been run jointly by senior vice presidents Anand Chandrasekher and Eric Kim.

Senior Vice President David Perlmutter, the other general manager of Intel's mobility group, will now run the unit by himself. The mobility group is responsible for products aimed laptop PCs.

Chandrasekher will manage a newly created unit aimed at "ultra-mobile" PCs, which are smaller than typical laptop machines but are bigger and offer more features than handheld devices. He will report to Perlmutter.

Kim will become general manager of the company's digital home group, which oversees production of Intel's Viiv PC platform and other products aimed at audio and video usage. The group had been led by Don MacDonald, who will become vice president of corporate brands and marketing and will report to Maloney.

Two executives with a combined 51 years of tenure plan to retire.

Bill Siu, the general manager of the channel platforms group is retiring. Intel has not yet named his replacement.

Richard Wirt, co-general manager of the software solutions group, is also retiring. Renee James, the other general manager of that unit will take over sole leadership.

Last week, Intel said it was cutting 1,000 management jobs so it could reduce the layers of people who sits between the company's top executives and its first line of supervisors.

Santa Clara-based Intel circulated the memo after earlier reporting that its second-quarter profit dropped 57 percent as stiff competition and budget-conscious PC buyers caused prices for its chips to drop.


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