Intel Corp. announced on Thursday that it is making a number of senior management changes focused on improving the company's structure and achieving better decision-making.
Intel Chief Executive Officer Paul Otellini announced the overhaul of the company's sales and marketing organization following Intel's second-quarter earnings announcement.
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, said Otellini.
The Santa-Clara, Calif.-based company is also moving away from its two-in-a-box strategy. The philosophy was that divisions such as the Digital Home Group are too large and complex to be managed by just one person. Two managers were deployed.
However, Otellini appears to be rethinking this management strategy.
The moves announced today will speed up our decision-making in these critical areas, while allowing me to spend more time on our key strategic issues, he said.
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.
Experts believe that these cuts are the beginning of a series of measures aimed at reducing the company's operating costs. Doug Freedman, a research analyst at American Technology Research, feels that Intel is only half way through its efforts, believing that the number of employees will fall below 100,000 by the end of 2006.