Intel finds safety in consolidation

The firm will join the networking and processor business with the communication product business to create a networking and communications group. Intel said the move was designed to streamline the two units which often pursued the same customers.

The move includes a reshuffle of top executives. Sean Maloney, executive vice president of Intel, will head up the new division and taking over from him as head of sales will be Mike Splinter - previously the general manager of Intel's technology and manufacturing group.

Following the shake up, two of the company's top executives have decided to retire - Gerry Parker, vice president of Intel's new-business group, and Stephen Nachtsheim, vice president of Intel capital.

The announcement follows Intel earlier decision to slow down investment in a planned manufacturing plant in Ireland.