WSJ: Intel to merge PC, mobile business units

— 8:59 AM on November 18, 2014

Change is brewing at Intel. According to a story by the Wall Street Journal, the chipmaker plans to merge its PC Client and Mobile and Communications divisions.

The reorg isn't official yet—the Journal quotes an "email sent to employees" by CEO Brian Krzanich—but it's apparently scheduled to take place in "early 2015." Kirk Skaugen, the current head of the PC Client division, will reportedly take charge of the newly merged business unit, which the Journal calls the "client-computing group."

Herman Eul, who helms the Mobile and Communications business, will help Skaugen with the reshuffle until "at least the end of the first quarter of 2015." Eul will then move on to a different position within the company.

Senior VP and PC Client group chief Kirk Skaugen. Source: Intel.

As the Journal points out, Skaugen's division has been doing quite a bit better than Eul's lately. In the third quarter, the PC Client group posted $4.12 billion operating income. The Mobile and Communications group, meanwhile, suffered a $1.04 billion operating loss.

The mobile losses didn't stop Intel from posting record revenue, record microprocessor shipments, and healthy net income for Q3. However, the Journal says Intel is under pressure to redouble its efforts in the mobile arena. Krzanich's e-mail to employees reportedly stated, "The market continues to evolve rapidly, and we must change even faster to stay ahead."

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