Intel Reportedly Preparing for Significant Job Cuts
Meanwhile, CEO Brian Krzanich is pushing to reposition the company to take advantage of emerging growth areas, such as wearable devices, the IoT and the cloud, and has hired Renduchintala to oversee an array of businesses, including PCs, mobile and the IoT. His hiring was unusual in that the chip maker rarely brings in top-level management from the outside, an indication that Krzanich wants to rapidly change Intel's inner workings. Since becoming CEO in 2013, Krzanich has done his own share of shaking up the company, including through the pursuit of the new growth markets. Bringing Renduchintala on board in November 2015 has accelerated the disruption at Intel. Renduchintala, who at Qualcomm helped lead the engineering team in charge of developing such products as the company's Snapdragon SoCs, is now president of Intel's new Client and Internet of Things Businesses and Systems Architecture Group. His appointment has resulted in a number of longtime Intel executives leaving the company. Most recently, Intel announced that Kirk Skaugen, senior vice president and general manager of the Client Computing Group, which includes PCs, has left the company, and that Doug Davis, senior vice president and general manager of the IoT Group, will retire at the end of the year. In addition, Aicha Evans, corporate vice president and general manager of Intel's Communications and Devices Group, also reportedly has left the company. In his memo to senior management, which was obtained by The Oregonian, Renduchintala said the company needs to be more competitive.Renduchintala also outlined plans to fix those issues. He will create three-person teams of officials for each new product being developed, and those team members will work together until the product development is completed. At that point, the team members will return to their previous roles. According to the report, Renduchintala said he is considering going outside the company to find some of these team leaders, and that going forward the plan is to use this program as the model for developing other new offerings. Pund-IT's King said that Renduchintala "was known for being a no-nonsense, very plain-spoken executive during his time at Qualcomm," and the fact that he was hired from outside Intel to assume such a high-level position was an indication that "the company's board and Brian Krzanich wanted to shake things up a bit." The resulting turmoil is not necessarily a bad thing, particularly in some parts of the business, according to Patrick Moorhead, principal analyst with Moor Insights and Strategy. "Intel needs something new to bring to the table on mobile silicon for smartphones and consumer tablets," Moorhead wrote in an email to eWEEK. "The company is investing billions with little financially to show for it, so a shakeup is probably a good thing for the company in those areas."
"Over the last three months I have conducted numerous project reviews with our execution teams, and there is a clear trend that has emerged in these reviews—a lack of product/customer focus in execution that is creating schedule and competitiveness gaps in our products," he wrote.