Intel Ousts CEO Krzanich After Relationship With Employee

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.

More from category

TransferWise Valued at $3.5 Billion in Secondary Offering

TransferWise Valued at $3.5 Billion in Secondary Offering

26 May 2019 comment

TransferWise leapfrogged fintech startups, more than doubling its valuation to $3.5 billion in a fundraising round that pushes back the need for an initial public offering, according to Bloomberg.

Huawei Says No More Walls

Huawei Says No More Walls

26 May 2019 comment

Huawei deputy chairman Ken Hu spoke in Germany at the Potsdam Conference of National Security.

Apple Accused of Selling iTunes Customers' Listening Data

Apple Accused of Selling iTunes Customers' Listening Data

25 May 2019 comment

Apple was sued by customers who claim the company is unlawfully disclosing and selling information about people’s iTunes purchases as well as their personal data, according to Bloomberg.