Chipmaking giant Intel said CEO Brian Krzanich has resigned after an investigation confirmed that the exec had a past consensual relationship with an Intel employee, violating the company’s non-fraternization policy.
The Intel board has named CFO Robert Swan as interim CEO, effective immediately. Swan has served as Intel’s CFO since October 2016, and previously spent nine years as the CFO of eBay. He’s also late of Electronic Data Systems and TRW, and was CEO of Webvan Group.
Intel said the alleged relationship involving Krzanich and confirmed by the investigation is a violation of the company’s non-fraternization policy, “which applies to all managers.”
“Given the expectation that all employees will respect Intel’s values and adhere to the company’s code of conduct, the board has accepted Mr. Krzanich’s resignation,” Intel said.
Intel has launched a search for a permanent CEO that will review both internal and external candidates. The board will retain a “leading executive search firm” to aid in the process.
“The board believes strongly in Intel’s strategy and we are confident in Bob Swan’s ability to lead the company as we conduct a robust search for our next CEO,” Intel chairman Andy Bryant said in a statement. “Bob has been instrumental to the development and execution of Intel’s strategy, and we know the company will continue to smoothly execute. We appreciate Brian’s many contributions to Intel.”
Intel also said it expects to deliver a record Q2, with revenues of approximately $16.9 billion and non-GAAP EPS of approximately $0.99.
Intel shares were down 77 cents (1.44 percent) to $52.69 each in Thursday morning trading.