Intel’s new CEO shakes things up

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By eeNews Europe

After officially being handed the reins at Intel last week with the retirement of Paul Otellini, Krzanich sent out an internal memo Monday outlining some pretty significant structural changes.

The memo—which has not been released externally—was reported Tuesday (May 21) by the Reuters news service and other organizations. Intel spokesman Chuck Mulloy confirmed the existence of the memo and walked through the highlights of the structural changes to EE Times.

Mulloy said he has heard from people outside Intel that they were surprised by how quickly Krzanich moved to shake things up. He characterized the swiftness as typical of Krzanich’s personal style. Mulloy said Krzanich made it clear during last week’s Intel shareholder meeting and in subsequent interviews that he is a man of action more than a man of words.

"He’s not much for talking about what he’s doing. He’s more about doing it," Mulloy said.

The structural changes—which call for more of Intel’s groups to report directly to the CEO—are designed to shorten lines of communication and put Intel in position to move more quickly, Mulloy said. The changes support  Krzanich’s four overarching goals—to continue driving sales of PC processors, move aggressively into mobile computing, accelerate growth in the data center market and continue Intel’s leadership in chip manufacturing technology, Mulloy said.

"It’s about moving quickly, being decisive, identifying markets sooner and moving more quickly to be there," Mulloy sad.

The memo also apparently cleared up an issue that may have been misperceived in some corners. Renee James, Intel’s newly appointed president, reports to Krzanich. "She works for him," Mulloy said. "It’s not two in the box."

Some had taken Intel’s appointment of a president along with naming Krzanich CEO as a sign that the two would share power over the company. But Mulloy noted that James is not the first president in Intel’s history—the company simply did not have the position over the past eight years because Otellini never appointed one.

James to oversee manufacturing group
James will retain responsibility for Intel’s software group, as well as remain chairman of McAfee, Intel’s security software subsidiary. In addition, the structural changes expand James’s responsibility for security beyond McAfee, including other product areas, Mulloy said. James will also be responsible for corporate planning and human resources, Mulloy said.

James has also been given responsibility for Intel’s manufacturing group. According to Mulloy, this is an area that Intel’s president traditionally oversaw in the years prior to Otellini.

Among the areas that will report directly to Kraznich are the Intel Architecture Group, which will be further restructured over the coming months, Mulloy said. Also reporting to Kraznich will be CFO Stacy Smith (who now has responsibility for Intel’s venture capital arm, Intel Capital), Intel’s legal department and government affairs, Mulloy said.

Renée James (right) with Peter Biddle, general manager of cloud services at Intel, at the Intel Developer Forum last September.

In the memo, Kraznich also outlined the creation of a new group, focused on devices, to be headed by Mike Bell, who formerly over saw Intel’s mobile and communications group. Mulloy said the new group would focus on emerging product trends. The new group will help Intel "identify market opportunities for the company beyond the near term," Kraznich said.

Dadi Perlmutter, another 30 year Intel veteran who was most recently GM of the Intel Architecture Group, will work with Krzanich to develop a new structure for that group. After the IA Group has been restructured, Perlmutter will sit down with Krzanich and James to determine the next step in his career at Intel, Mulloy said.

"The idea for all of these changes is to shorten lines of communication and create an atmosphere where people can move more quickly," Mulloy said.

Mulloy also described the changes as "iterative." He expects Kraznich—who he called a very decisive person—to continue shaking things up as he deems necessary to streamline Intel and move the company more quickly.


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