Tag: krzanich

Intel CEO sells shares

537272_537272Intel CEO Brian Krzanich has surprised the cocaine nose jobs of Wall Street by flogging off a big chunk of his shares.

According to a SEC filing on Nov. 04. Krzanich sold 35,000 shares at an average price of $34 each. The total value of the transactions was $1.2 million.
In the last 30 days, Krzanich also sold 35,000 shares valued at $1.06 million.

This is major insider selling, especially from the CEO. These sales have lowered Krzanich’s stake in Intel to 0.01% of the chip maker’s total market capitalisation.

He is not the only Intel executive trying to shift a lot of shares. Renee James sold 3,602 shares at an average price of $34.76 on October 26 in a transaction worth $125,206. Gregory Pearson sold off $51,472 worth and Andy Bryant sold $772,968.

All this is surprising. Most analysts consider Intel worth holding onto. UBS analysts think the stock is worth buying. This is mostly because Chipzilla has been doing better than Wall Street expected. One has to wonder if the executives know something we don’t.

Intel begins lay offs

Great-Depression-Unemployment-Line-Intel CEO Brian Krzanich has confirmed that the chipmaker is laying off people.

In an internal memo Krazanich said that Intel was implementing “headcount reductions” which we guess will involve all those Intel employees who have a head.

“With today’s incredible pace of innovation and change, companies consistently need the flexibility to invest in skills and experience required in new growth areas,” he said. Quite how that sentence is connected to “clean out your desk we are trying to save money,” is not clear.

Krzanich didn’t specify the exact number of layoffs, but said “no more than a few hundred employees in any given site or geography” will be affected by this restructuring plan.

He also reiterated Intel’s plan to keep roughly the same number of employees by the end of the year as it started in 2015. Intel had 106,700 employees at the end of 2014, with about half of them located in the US.

It appears this is all about losing money because Intel’s core PC business has been falling like a free fall team of parachuting elephants and its mobile group lost more than $4 billion last year and could not even find it down the back of the sofa.

Intel combined the PC and mobile groups under a single division called Client Computing Group last quarter, which accounted for more than 58 per cent of total revenue. As a result, Intel’s data centre group is now the most profitable unit within the company.

It is not the first time Intel had a huge workforce restructuring. Last year, Intel said in its annual report that “restructuring actions that were approved in 2014 impacted approximately 3,700 employees.”

Krzanich set to wow Vegas

Intel Chief Executive Officer Brian Krzanich is following Elvis Presley, Tom Jones, Bette Midler, Cher, Terry Fator, Lance Burton, Wayne Newton, Tony Curtis, Leann Rimes, George Jones, Liberace, Frank Sinatra and the infamous Céline Marie Claudette Dion who hope that a turn on a Los Vegas stage might save their bottom lines.

Krzanich will take the stage at the International Consumer Electronics Show claiming that the chipmaker will do what it takes to remain relevant.

It is expected that he will show everyone some of the mobile and wearable technology from Intel’s New Devices division. The tame Apple Press claims that Krzanich has appointed former Apple executive Mike Bell the head of the division in the hope that the luck of Steve Jobs will be upon him.

Krzanich will also emphasise how Intel has sped up the pace at which it brings new products to market and say how keen he is to ensure that the company does not miss new opportunities such as wearable devices and other personal technology.

Chipzilla is dependent on servers and PCs and has more than 80 percent of the market for PC processors and more than 95 percent share in server chips.

In November, the company forecast that sales will be about the same as the $52.6 billion it will report for 2013, below the $53.7 billion analysts were projecting, according to the average of estimates compiled by Bloomberg.

Krzanich is expected to say that Intel will focus on providing what the market wants in chips rather than following the company’s traditional method of designing and producing products aimed at determining the direction of technology.

It will have to pull finger in its R&D if it wants to participate in the latest buzzword “the Internet of things” which is things like intelligent fridges and wearable computing such as smart watches, glasses.

Cynics, like us, do not see Intel being able to do much that is interesting in 2014, unless Krzanich pulls a rabbit out of hat at Vegas. 

Intel's new broom orders sweeping restructure

Chipzilla’s new chief executive, Brian Krzanich, has surprised analysts by ordering a sweeping company reorganisation.

It had been thought that Krzanich would keep the status quo at Intel and possibly issue a few more fashion bags to show his individuality from previous CEOs.

But it seems that within hours of moving into his new office he created a unit aimed at growing its market share in mobile technology.

The shakeup places most of the main product groups of the world’s top chipmaker directly under the CEO’s supervision.

Intel’s sprawling global manufacturing operation have been given to new president Renee James to play with.

According to Reuters, the reorganisation was outlined in an internal memo sent to employees.

In it ,Krzanich said that he was committed to making quick, informed decisions and wanted to be bolder, faster, and able to leap tall buildings in a single bound. We made the last one up.

“Our business faces significant challenges, and we simply must continue to execute while finalizing our future strategy,” he wrote.

Krzanich said that under his leadership, the top chipmaker will be more responsive to customers in an intensified focus on the fast-growing smartphone and tablet market where it lags.

The PC client group, mobile communications and data centre unit, which previously reported to Intel Architecture group chief Dadi Perlmutter, now reports directly to Krzanich.

It is not clear what Perlmutter gets to do once he has handed these parts of the Intel empire over to its new Imperator. Apparently they still have to talk about that.

Mike Bell will head up Intel’s newly formed “new devices” group, which will focus on emerging product trends.

“The new devices organization is responsible for rapidly turning brilliant technical and business model innovations into products that shape and lead markets,” Krzanich said in the email, according to the source.

Hermann Eul, who shared responsibility for Intel’s mobile communications group with Bell will now take over that business completely.

The restructuring flies in the face of what Intel executives have previously said about mobile chips.

For a long time they have been telling us that the company should not focus too much on catching up in smartphones and tablets at the expense of missing out on future trends in mobile.

While Krzanich’s creation of the “new devices” group signals he is also looking beyond today’s mobile toys, the overall restructuring does indicate a sudden focus on mobile.