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Intel rudely disturbs an otherwise quiet Monday
On a day when half the US has the day off in observance of Martin Luther King Day, Intel tried to sneak in a corporate restructuring that will create five new divisions.
January 17 is the birthday of the civil rights activist and a Bank Holiday.
The new divisions show a separation along the lines of customer groups, focusing on mobility, the digital enterprise, the digital home, distribution channel and digital health care.
Intel previously had two business groups: the Architecture and Communications groups. The first focused on microprocessors ranging from the Pentium to Itanium as well as chipsets, the second did flash memory, mobile processors such as the Xscale and networking products.
The Communications Group lost $791m last year and has been disbanded. Products that were the responsibility of that group will be transferred to the new divisions.
The restructuring has the handwriting of the company's future CEO Paul Otellini all over it (Craig Barrett is slated to step down in May). He has for a long time been pushing for a "platform strategy" where Intel sells bundled products such as processor, chipset and memory, aimed at specific applications.
Intel did not disclose if it expected any charges or cost savings as a result of the restructuring.
January 17, 2005 at 11:28 PM | Permalink
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