Less than a week after

announcing that earnings will fall short of expectations this quarter, chip giant


(INTC) - Get Report

said Wednesday that it would reorganize management at two of the units at the center of that slowdown.

Intel plans to combine its communications product group and its network communications group into one business unit under the direction of Sean Maloney, who currently oversees the sales and marketing division. The current heads of both units will report to Maloney.

Maloney's sales and marketing title goes to Mike Splinter, who is co-manager of the technology and manufacturing group. Robert Baker of Intel Components Manufacturing takes over for Splinter. No replacement has been named for Baker.

Intel spokesman Tom Beermann said that the reorganization wasn't directly related to last week's announcement, in which Intel said that revenue would decline 25% in the first quarter from the fourth quarter, not the 15%

initially anticipated. At that time, Intel said the communications, networking and server sectors had slowed this quarter. But Beermann did say that there could be cost savings from the move. Intel started cutting spending earlier this quarter with a hiring freeze and last week said it would cut 5,000 jobs through attrition by the end of 2001.

In other management moves, Intel said two long-time executives, Stephen Nachtsteim, 56, who heads up Intel's investments through

Intel Capital

, and Gerhard Parker, 57, general manager of the New Business Group, will retire this spring. Replacements haven't been named.