DOW JONES NEWSWIRES 
 

Intel Corp. (INTC) announced a restructuring of its chain-of-command, placing more responsibility on three senior officials under Chief Executive Paul Otellini.

The re-organization is designed to thin the number of executives reporting directly to Otellini, providing him with more time to devote to corporate strategy.

Intel is consolidating all of its major product divisions under a new group headed by Sean Maloney and Dadi Perlmutter. Maloney - who has been the company's sales and marketing chief - will oversee the business end while Perlmutter will lead product development.

Meanwhile, Chief Administrative Officer Andy Bryant will oversee Intel's manufacturing operations. The company said the move "formalizes the role of influence Bryant already plays" with the group "and further increases Otellini's time on business strategy."

In addition to manufacturing, Bryant will be charged with running many of Intel's administrative operations, such as human resources and the office of the chief information officer.

With the implementation of the new organizational structure, eight units will report directly to the chief executive. Intel spokesman Chuck Mulloy said the number was previously "well over" eight.

The re-organization will not change the way Intel breaks out its financial results, Mulloy said.

The move, which include the departure of General Counsel Bruce Sewell, comes as the chip giant has been reporting increased demand and recently boosted its third-quarter expectations.

Sewell will be replaced on an interim basis by deputy general counsel Suzan Miller.

Maloney will be succeeded by Tom Kilroy, who previously was co-manager of processors for enterprise-class applications, the unit previously known as the digital enterprise group.

Pat Gelsinger, who was the other co-manager, will leave. He is expected to take an executive role with storage giant EMC Corp. (EMC), running that company's storage-products operations and some smaller software units, according to The Wall Street Journal.

Intel shares were down 1% premarket at $19.32. The stock through Friday was up 33% this year.

-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354; kevin.kingsbury@dowjones.com