As Intel continues to cut spending on a massive scale, longtime channel advocate Jason Kimrey is leaving the chip maker along with a few other partner-facing leaders.
Longtime Intel channel veteran Jason Kimrey, a strong channel advocate who is praised by partners as one of the most effective channel heads in the industry, is leaving the troubled semiconductor giant, CRN has learned.
The Santa Clara, California-based company on Friday informed sales and marketing group (SMG) employees of Kimrey’s departure, said a source with direct knowledge of the matter who requested anonymity to discuss the personnel move.
[Related: Intel Plans 35 Percent Cut In Costs For Sales And Marketing Group]
Intel partners told CRN they were surprised to learn of the departure of Kimray, vice president of commercial and partner sales for North America and a 23-year Intel veteran whom they considered the “face of the channel” for the chip company. Kimray is considered the “face of the channel” for the chip company. Most Influential Channel Head by CRN He has held this position for the last six years due to his strong advocacy for the channel.
“Jason was definitely the channel face for Intel and he treated everyone he encountered in the channel over the years fairly well,” said Marty Bauerlein, chief consumer and commercial officer for distribution giant D&H Distributing.
“His reputation was probably the best of any salesperson’s in terms of objectivity, his investment strategy and his involvement across the country. I would put him in the top 5 per cent of channel executives in terms of these things,” he said.
In a statement to CRN, an Intel spokesperson reiterated the company’s commitment to the channel.
“We are deeply committed to the success of our partners, and as Intel transforms into a more efficient, agile company, we are increasing our focus on our channel partner ecosystem,” the spokesperson said.
Kimray’s departure coincides with a handful of other senior channel leaders leaving Intel, as SMG — the channel’s main channel for working with the chipmaker — plans to reduce costs by more than 35 percent through job cuts and program changes. CRN reported last month,
The turmoil at SMG comes at a time when Intel is looking to cut more than 15,000 jobs, or 15 percent of its total workforce, and cut costs by more than $10 billion to cope with the crisis. Unexpected and significant decline in revenue and profitabilityIntel has been reducing its workforce through voluntary buyouts, early retirement packages and layoffs.
Other channel leaders leaving Intel include David Allen, who has been in the region for 31 years and was most recently director of U.S. distribution sales and marketing, and Jennifer Bossin, who has been in the region for nine years and was sales director of global systems integrator partnerships, according to sources familiar with their plans.
Kathleen Robinson, who was managing director of federal systems integrators and defense industrial base partners, recently updated her LinkedIn profile to say she left Intel last month to become vice president of enterprise sales at Seeker Technologies, an enterprise AI software company that is working with Intel on its Gaudi accelerator chips.
Allen is leaving because he has accepted a retirement package, according to two sources familiar with his departure. The reasons for Bosin and Robinson’s departures could not be known. Allen, Bosin and Robinson did not respond to requests for comment.
The departure of Intel channel veterans such as Kimray, Bosin and Allen is a “big blow” to the channel, an executive at one national systems integrator said.
“It’s really because you’re losing the leadership infrastructure,” said the executive, who asked not to be named to speak candidly.
Kimray Champion Partners
In February, Intel appointed Kimrey to head its North American commercial and partner sales organization, coinciding with the creation of the group.
The group was formed through a merger with the US Channel Scale and Partners team, which managed relationships with large US enterprise customers, US communications service providers, as well as Canadian customers and partners.
At the time, Kimrey told CRN that Intel decided to integrate the teams to ensure that the previously separate groups “work as one Intel” and “bring the best of what Intel has to offer to the entire commercial market with a single voice.”
“This is another example where we are trying to reduce layers and put in place a more efficient structure to drive maximum value to our customers through our partners,” he added.
An executive at another solution provider, who asked not to be named, said Kimray has done a great job connecting partners with customers in the region.
“He has a very good connection to sales. For us as a partner, we need someone who has some level of ability in sales,” he said.
Prior to leading the North America commercial and partner sales organization, Kimrey served as Intel’s channel head for the Americas for nearly seven years. In that role, he was responsible for working with a variety of partners, including national solution providers, system integrators, distributors and software providers.
Over the years, Kimray’s partner organization has launched and then refined Intel Partner Alliance Programwhich consolidated previously separate partner programs into one with the goal of simplifying access to partner resources and making it easier for different types of partners to collaborate.
Bauerlein, the D&H Distributing executive, said Kimray always took the time to make sure he had the latest information on any partner he was working with.
He added, “While he was working with D&H, he always made sure he was up to date on all the programs we were running, such as our Success Path program, and advocated for investments in our programs. And he also did a great job working with his team to ensure they provided use cases that were relevant to solution providers.”
Partners express concerns about departure and financing
An executive at a major distributor called Kimrey’s departure surprising and said he wanted to know how Intel would handle the transfer of responsibilities to employees leaving the company, whether voluntarily or through layoffs.
“If you’re looking at people who have bigger roles and bigger responsibilities, you know the transition process is very important,” said the distribution executive, who requested anonymity to talk about Intel employees leaving the company.
In addition to concerns about losing key channel advocates like Kimray, there remains concern among partners about a reduction in funding for them due to Intel’s plans to make major cuts to SMG. According to presentation slides seen by CRN last month, the group expects to cut $100 million this year and $300 million in the first half of next year by simplifying programs and adjusting roles and responsibilities around funding for partners.
Intel recently rejected a request for funding for sales enablement activities such as content development and training, the national systems integrator executive said.
“I’m afraid this will limit the resources that we have. So you have AMD, you have Nvidia coming forward to provide more resources, and you have Intel looking at providing less resources,” the source said.
Executives at the national systems integrator worry that Intel’s dwindling resources could hurt the company’s efforts to challenge Nvidia with its Gaudi 3 accelerator chip, a key part of the semiconductor’s AI strategy in the data center.
“They have a great product in the form of Gaudi 3, but I think their ability to deliver it to partners and customers is at risk,” the systems integrator said.
Although the national systems integrator executive has seen other major vendors cut funding for the channel, this will be a new challenge for Intel.
“Intel has built a model for getting people’s attention within the sales and engineering organizations, and they have to figure out a different way,” the source said.