Intel Shake-Up Gets Specific

Intel  loves to tout the benefits of having two computer cores (dual-core) on its latest microprocessors, but on the management side it looks like two is not always better than one.

Today Intel confirmed a significant shakeup in its top management ranks that indicates a move away from the co-manager model. The announcement follows Intel’s announced plans to layoff about 1,000 managers.

Intel use of what it calls a “two-in-a-box” management structure is apparently being called into question as part of the company’s 90-day review of operations begun in April. (Two-in-a-box essentially refers to two co-managers for different groups within the company.)

The senior management shake-up means Sean Maloney, who co-managed Intel’s mobility group, now heads the chip giant’s sales and marketing group and has been named chief sales and marketing officer.

Senior vice president David Perlmutter continues as general manager of the mobility group. Eric Kim, 51, senior vice president, who previously co-managed the Sales and Marketing Group, will become general manager of the Digital Home Group.

Senior vice president Anand Chandrasekher, 43, formerly 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.

Analyst Roger Kay said the moves were inevitable, given Intel’s slower growth and increasing competitive pressures.

“Intel built up staff in the go-go years when margins were up around 60 percent, but now when growth is slowing, it needs to save money and also find ways to be more effective and efficient,” Kay, president of Endpoint Technologies Associates, told internetnews.com.

“Intel has had too many layers of management and the company has not been as responsive as it could be.”

In last week’s earnings calls with analysts, Intel CEO Paul Otellini said the decision to layoff managers was based in part on employees’ suggestions that it do just that. “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,” Otellini said in a statement today.

Intel also announced the retirements of William Siu, a 26-year Intel veteran who served as vice president and general manager of the channel platforms group, and Richard Wirt, a 25-year Intel veteran who is vice president, senior fellow and co-general manager of the Software and Solutions Group.

Intel said both executives will remain full-time with Intel to manage their organizations’ transitions. With the impending retirement of Siu, the Channel Platforms Group will report to Maloney in the sales and marketing group. Intel said it plans to name a general manager for the channel platforms group at a later date.

Renee James, vice president 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.