Intel CEO Brian Krzanich resigns because of consensual relationship with employee
Intel CEO Brian Krzanich has stepped down from the company.
Stephen Shankland/CNETBrian Krzanich is out as CEO of Intel.
The chip giant on Thursday said that Brian Krzanich had resigned, and that the board had named Chief Financial Officer Robert Swan as interim CEO. The board has begun a search for a permanent CEO, including both internal and external candidates.
The resignation comes after the board learned of a past consensual relationship with an Intel employee, and an investigation confirmed that it violated Intel's non-fraternization policy, which applied to all managers, the company said.
"We appreciate Brian's many contributions to Intel," Intel Chairman Andy Bryant said in the release. "The board believes strongly in Intel's strategy and we're confident in Bob Swan's ability to lead the company as we conduct a robust search for our next CEO."
The resignation marks an ignoble end to an executive whose chief legacy is the push to diversify one of Silicon Valley's biggest and most powerful players. Krzanich, who took the reins five years ago after serving as the operating chief, was considered a "safe pick." But he steered Intel through questions over whether the company could remain dominant as the world went more mobile, investing in everything from drones to virtual reality.
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Intel built x86 chips that traditionally power PCs, but the world was increasingly using smartphones that used so-called ARM chips from the likes of Qualcomm. But under Krzanich, the company positioned itself for a fresh start with the advent of next-generation 5G wireless technology, and has eked back into the mobile world as a supplier for Apple's iPhones.
Not all of his bet have paid off, including its hasty retreat from VR once the buzz over the technology died down.
Krzanich's most recent headaches have been dealing with massive vulnerabilities (called Spectre and Meltdown) that potentially left chips from Intel, Arm and AMD open to hacking attacks. He's long been a fixture as a CES keynote speaker, but security concerns dominated this year's presentation.
But Krzanich will likely most be remembered for championing workplace diversity. He made it a central issue at his CES keynote address in 2015, pledging $300 million to support better representation in technology. His actions was one of the boldest at a time when the noise over diversity was just starting to spike.
"This isn't just good business," Krzanich said in his speech. "This is the right thing to do."
Intel, which declined to comment further, is hoping for a smooth transition during the search for a new CEO. To reassure investors, the company said it expects to reach a record second quarter with revenue of roughly $16.9 billion and earnings excluding one-time items of 99 cents a share, above its prior forecast. Intel will report full results on July 26.
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