Intel Ousts CEO Krzanich After Relationship With Employee
Foto: Dražen Tomić - Tomich Productions
Intel removed Brian Krzanich as CEO after the chipmaker learned he had a consensual relationship with an employee, a violation of the company’s policies, according to Bloomberg. CFO Robert Swan was made interim CEO while the board searches for a permanent replacement, the company said in a statement.
Intel heard about Krzanich’s relationship about a week ago from an employee acting under company rules that require staff to report such matters when they become aware of the information. Intel has previously fired people for "fraternization" under a rule implemented in 2011 and therefore the board felt it had no choice in this case.
Krzanich’s ouster throws into turmoil the leadership of a company that’s been a model of stability and organization for 50 years. Krzanich, 58, leaves Intel at record performance levels financially but facing a group of new challengers as the computer processing market it dominates reshapes itself to deal with new trends such as artificial intelligence.
Krzanich moved up the ranks at Intel over more than three decades. Since becoming CEO in 2013 he has overseen the company through an era of intense competition and consolidation in the chip industry.
Swan, the former CFO of eBay, has been Intel’s CFO since October 2016. He oversees finance, information technology and corporate strategy. He previously was CEO of Webvan Group.
Intel also raised its second-quarter revenue and profit forecast. It said it’s expecting revenue of about $16.9 billion and adjusted earnings per share of about 99 cents when it reports results on July 26.