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New Intel boss quick to implement big changes

New Intel boss Brian Krzanich has wasted no time in making changes at the company, including the creation of a "new devices" business unit and announcing a push to develop marketable mobile chipsets faster, a spokesman for the chip giant said on Tuesday.

Krzanich sent an internal memo to Intel employees earlier this week, outlining "a sweeping company reorganization," according to Reuters.

The "new devices" unit — the name is a working title, according to Intel spokesman Chuck Mulloy — will be headed by former Apple and Palm executive Mike Bell. Bell's team will be charged with "future-casting" markets for Intel products, Mulloy said. Right now, that means making Intel more competitive with Qualcomm and others in smartphones and tablets, but the unit will be focused on "more than just mobile," he added.

Krzanich, who last week officially succeeded Paul Otellini as the sixth CEO in Intel's history, will be directly responsible for the company's client and datacentre businesses, currently under Intel Architecture Group (IAG) general manager Dadi Perlmutter. IAG division heads will now report directly to Krzanich and Perlmutter will work with the new Intel CEO to "map out how that re-organisation happens," Mulloy said.

It wasn't clear what the veteran Intel executive would do following the transition, but Reuters quoted an unnamed source as saying that Perlmutter and Krzanich would "define his next significant contribution at Intel."

Krzanich will also oversee Intel's legal and financial operations, with Intel Capital now reporting to CFO Stacy Smith instead of directly to the CEO, as the arrangement was under Otellini.

Meanwhile, new Intel president Renee James takes over Intel's global manufacturing operations, which were managed by Krzanich prior to his assumption of the CEO position, Mulloy confirmed. James will continue to have a hand in Intel's software and security businesses.

Mulloy stressed that James "works for Brian," dispelling what he said was a perception that Krzanich and James had equal roles in the new Intel hierarchy.

Krzanich's memo and an earlier presentation to Intel shareholders stressed his commitment to moving quickly to keep up with "a rapidly changing industry."

"As your CEO I am committed to making quick, informed decisions. I am committed to being bolder, moving faster, and accepting that this means changes will be made knowing that we will listen, learn, and then make adjustments in order to keep pace with a rapidly changing industry," the memo said, according to Reuters.

"Our business faces significant challenges, and we simply must continue to execute while finalizing our future strategy."

Mulloy said Krzanich's strategy also applied to the re-organisation he was implementing at Intel.

"The primary objective is to move faster, not just with the Intel architecture, not just with mobile, but across the entire company and to be able to move faster into markets as we see them develop," Mulloy said.

"This restructuring could change, in fact. It's iterative. If it's not working, the idea is to move faster and change it so it does work."