Intel Shakes Up Top Management

By John G. Spooner  |  Posted 07-20-2006
Intel's mobile executives are moving upward.

Following its second-quarter earnings release, the Santa Clara, Calif., chip maker told employees on July 19 that senior executives Sean Maloney and David Perlmutter have been promoted, giving them more responsibility over the company's day-to-day operations.

Maloney, who ran the company's Mobility Group along with Perlmutter, is now Intel's Chief Sales and Marketing Officer and in charge of Intel's Sales and Marketing Group, replacing Eric Kim and Anand Chandrasekher. Perlmutter, a senior vice president at Intel, is now running the Mobility Group, the company said in a statement.

The management shakeup, announced by Intel on July 20, drives for quicker decision making.

It reduces the number of executives who report directly to Paul Otellini, Intel's CEO, and largely eliminates Intel's practice of two-in-a-box management where two executives run one group together.

Otellini, who has been leading a major review and reorganization of Intel's business practices launched in April, will thus have more time to focus on larger strategic initiatives.

The review has also seen Intel lay off 1,000 managers in an effort to improve communication and decision-making.

"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," Otellini said in a July 20 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."

Click here to read more about Intel's internal efficiency review.

Maloney, who served as the steward for the introduction of Intel's Centrino brand and has been a rising star at Intel—one many industry insiders believe could eventually take the helm as CEO—will be responsible for determining Intel product strategies and pricing. Perlmutter takes on responsibility for Intel's product development and technology development efforts, analysts said of the changes.

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