Intel Shakes Up Executive Ranks Amid Falling PC Sales
Most of Intel’s efforts to make more of the post-PC era are still struggling, but the dominant chipmaker will be getting some fresh leadership in several key areas soon.
Intel announced on Monday that Doug Davis, who oversaw the company’s modest $2 billion Internet of Things group, plans to retire at the end of the year. But no successor was anointed immediately for the 32-year Intel veteran, and the company stipulated Davis would stay on until a replacement is named.
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Also leaving is Kirk Skaugen, head of Intel’s massive $34 billion client computing group that includes phone, tablet, and PC platforms. Skaugen is headed for an undisclosed “next career opportunity” and will be gone by the end of the week, Intel noted. Skaugen will be replaced by one of his deputies, Navin Shenoy, who had overseen Intel’s notebook and tablet efforts.
Davis and Skaugen’s planned departures come a week after news that Aicha Evans, who runs the lagging mobile chip unit, was out after less than a year on the job, according to a Bloomberg report. An Intel spokesman said the company was “not offering any further comment on Aicha Evans’ departure.”
With sales of PCs dropping for the past few years, Intel has increasingly tried to branch out into new areas with chips for smartphones and all manner of IoT devices. Sales in Skaugen’s PC-dominated group dropped 8% last year, but it still brought in 58% of Intel’s total annual revenue. The IoT unit reached almost $2.3 billion in sales last year, a 7% increase from 2014, but operating profits declined 12%.
The smartphone effort has made little headway and was rolled into Skaugen’s group last year after reporting over $7 billion in losses on its own over the prior two years. Still, rumors have circulated over the past few months that Intel may finally have gotten one of its chips into an upcoming iPhone.