Intel CEO Pat Gelsinger announced a reorganization on Tuesday that moved senior technologists into leadership roles and created two new business units—one on software and the other on high performance computing and graphics.
Gelsinger is still fairly new in his role, so the changes are not entirely unexpected, analysts said.
“A flatter organization is better at this juncture as it should enable faster decision making and execution,” said Patrick Moorhead, an analyst at Moor Insights & Strategy, in an email. Gelsinger has pushed the need for faster execution and has also joined a chorus of executives pushing for government support for construction of domestic chip fabs.
Moorhead said Intel needs to produce, since it held 98% general purpose processor share five years ago, which has shrunk to 90%. "That [is] a hard optic to shake off," he added.
Intel shares dropped during the day but then recovered to $55.87 by market close.
Greg Lavender, a 35-year tech veteran, will serve as Intel’s chief technology officer and head up the new Software and Advanced Technology Group. The new group will drive Intel’s unified vision for software. As CTO, he will head up research programs including Intel Labs.
He most recently served as CTO of VMware where Gelsinger had served as CEO for eight years before moving to Intel on Feb. 15. Lavender has also held leadership positions at Citigroup, Cisco and Sun Microsystems.
RELATED: Intel CTO Michael Mayberry retired in November 2020 after a 36 year career at Intel.
Raja Koduri will head up the new Accelerated Computing Systems and Graphics Group (AXG) to improve the company’s focus in key growth areas. He previously served as general manager of Architecture, Graphics and Software.
Intel’s Data Platform Group will be restructured into two new business units as well. Sandra Rivera will become general manager of Datacenter and AI. She was previously Intel’s chief people officer and head of its Network Platforms Group.
Nick McKeown will join Intel full-time as senior vice president and general manager of the new Network and Edge Group, which brings the former Network Platforms Group, Internet of Things Group and Connectivity Group into a single business unit. McKeown was previously a part-time Intel senior fellow.
All four will report directly to Gelsinger.
The company also announced that Navin Shenoy will leave Intel on July 6 after 26 years of service, most recently as executive vice president and general manager of the Data Platforms Group.