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Intel exec leaves to manage information infrastructure products at EMC

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The Associated Press

SANTA CLARA, Calif. - Intel Corp. (Nasdaq: INTC) announced a reorganization of its management structure Monday as the head of its largest business unit leaves the company to become a top manager at data storage company EMC Corp. (NYSE: EMC).

EMC maintains a manufacturing facility in Apex as well as a facility for research and development in RTP.

The companies said Pat Gelsinger, 48, is leaving the world's largest chip maker to manage information infrastructure products at Hopkinton, Mass.-based EMC. He had been general manager of Intel's Digital Enterprise Group.

Intel, meanwhile, said it is consolidating its separate divisions into one unit called the Intel Architecture Group.

It will be headed by executive vice presidents Sean Maloney and Dadi Perlmutter, leaving CEO Paul Otellini to devote more time to corporate strategy, the company said.

Maloney will head business operations, while Perlmutter will handle product development.

In addition, Intel said its global manufacturing operations will now report to Andy Bryant, the company's chief administrative officer.

Bruce Sewell, Intel's top lawyer, is also leaving the company.

The departures appeared to catch Intel off guard. Gelsinger was scheduled to give a keynote speech next week at Intel's developer forum in San Francisco. Sewell has been Intel's public face in its fight against allegations of antitrust abuse.

But spokesman Chuck Mulloy said the departures were "independent of the organizational changes."

"We would have preferred that they both stay but understand their motivation for leaving," Mulloy said.

Gelsinger's next move is clear; Sewell's isn't.

Gelsinger, who led Intel's Digital Enterprise Group, which includes desktop and server microprocessors and makes up more than half the company's revenue, will now be EMC's president and chief operating officer for "information infrastructure" products.

Gelsinger first joined Intel in 1979 and eventually led the Santa Clara-based company's research labs. He was Intel's first chief technology officer.

While Gelsinger, 48, had been considered a possible candidate for Intel's CEO job, he might have a better shot at snagging the top slot at his new company.

Otellini, 58, has been Intel's CEO for just four years, after succeeding Craig Barrett, who held the job for seven years. Meanwhile, EMC's CEO, Joe Tucci is 62, and has held that job since 2001.

Gelsinger will have competition should Tucci decide to step down. Hopkinton, Mass.-based EMC also said Monday that it was promoting Howard Elias, 52, to president and chief operating officer of the an information-services unit.

Gelsinger said he reached a "natural transition" because he had been in his latest job at Intel for 5 years and had hit his goals for that position. Surrounding that was uncertainty about the organizational changes Intel was discussing, which Gelsinger said "reinforced the idea that if we were going to think about something, now's a good time to ponder it."

He acknowledged that one reason he was interested in EMC was because the company assured him during his interviews that someone in his job would be considered for the CEO slot somewhere down the line.

"It was clear I'm being considered for that," he said.

Intel wouldn't say what Sewell is doing next.

Sewell has been leading Intel's fight against antitrust allegations, including appealing a $1.45 billion antitrust fine by the European Union. The EU accuses Intel of illegally boxing rival Advanced Micro Devices Inc. out of accounts by selling some chips below cost and paying retailers and computer makers not to use AMD chips. Intel denies the allegations.

Suzan Miller, currently Intel's deputy general counsel, is to serve as interim general counsel.

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