On Thursday, chip-manufacturing giant, Intel, announced that effective immediately, Brian Krzanich has resigned as the company’s Chief Executive Officer. Robert Swan, the company’s Chief Financial Officer, will take on the role of interim CEO until a new CEO is appointed.
The resignation comes after the company’s Board learned of Krzanich’s past consensual relationship with an Intel employee.
“Intel was recently informed that Mr. Krzanich had a past consensual relationship with an Intel employee,” the company said in a press release. “An ongoing investigation by internal and external counsel has confirmed a violation of Intel’s non-fraternization policy, which applies to all managers.”
Intel’s Board of Directors has “a robust succession planning process in place and has begun a search for a permanent CEO, including both internal and external candidates.”
Krzanich joined Intel in 1982, and has been the company’s CEO since May 2013. Intel removed his biography from its website this morning.
As CEO, Krzanich was responsible for evolving Intel beyond the sluggish PC market after decades spent comfortably atop the chip manufacturing world. His goal had been to “transform Intel from a PC company to a company that powers the cloud and billions of smart, connected computing devices,” as he said in a 2016 memo.
Krzanich’s most recent responsibilities have been spearheading representation for massive vulnerabilities Spectre and Meltdown, that potentially left chips from Intel, Arm and AMD open to hacking attacks. He has also been a CES keynote speaker for a long time, but security concerns dominated this year’s presentation.
“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. “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.”
Soon after the news came out, the company’s shares fell nearly 2%, trading at $52.40.