All of its major product divisions will be folded into the new Intel Architecture Group (IAG) and co-managed by Executive Vice Presidents Sean Maloney and Dadi Perlmutter. Maloney will be responsible for business and operations while Perlmutter will head up product development. This basically puts all sales, marketing, micro-architecture planning, and CPU and chipset development of the world's largest semiconductor company into the hands of two people.

Six business groups will operate within IAG. The PC Client Group will see the consolidation of Intel's mobile and desktop computer products. It will be led by Shmuel (Mooly) Eden, currently Vice President and General Manager of the Mobile Platforms Group.

Eden's first major accomplishment with Intel was the addition of the MMX multimedia extensions to the x86 architecture. He also worked on the failed Timna project, which would have been a low-cost system-on-chip product for emerging markets. He redeemed himself with Banias, commonly known as the Pentium M, which was responsible for much of the company's success in the mobility space. A long time advocate of power efficiency, he spoke out against the Pentium 4 at a time when high clock speeds were considered to be the future of Moore's Law.

The Datacenter Products Group led by Kirk Skaugen will focus on servers, cloud computing, networking and high-performance computing. The Visual Computing Group led by Jim Johnson will develop Larabee and follow-on graphics products. The Ultra Mobility Group will continue to be led by Anand Chandrasekher, and will focus on extending the Intel architecture into mobile handheld devices. The Digital Home Group that develops chips for PVRs, game consoles, and other CE applications will still be under Eric Kim.

Doug Davis will continue to lead the Embedded Products Group, which Intel CEO Paul Otellini believes will be one of the drivers of the company's growth. In February, he stated that he expects sales to triple in a few years from over a billion to well over three billion.

Tom Kilroy will move back to the Sales and Marketing Group (SMG), which he led before he was promoted to co-General Manger of the Digital Enterprise Group (DEG). Kilroy will now report directly to Otellini.

Intel insists that in making the changes, Paul Otellini "will devote a higher quotient of his time to corporate strategy and driving the company's growth initiatives".

Meanwhile, the company is trying to downplay the significance of the departure of the legendary Pat Gelsinger after thirty years with the company. Sources have indicated that he was unhappy with his future role in the company and left for EMC, thus precipitating this shakeup.

Intel's General Counsel Bruce Sewell is also leaving.

"We thank Pat and Bruce for many years of service to Intel and wish them well in their future endeavors," said Otellini.