Intel’s CEO Ejected After Relationship with Employee Revealed

Brian Krzanich, Intel’s CEO, has been forced from his position and from the board. This move follows Krzanich’s “consensual relationship” with an employee. Such a relationship would violate the company’s non-fraternization policy. While the incident is said to have occurred “some time ago,” it is just now being brought to light.

Intel’s Statement 

Regarding the CEO stepping down, the company stated this.  

“An ongoing investigation by internal and external counsel has confirmed a violation of Intel’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.” 

According to those familiar with the situation, the relationship occurred, and ended, some time ago. Exactly how long ago, and with whom, has not been said. However, such fraternization is in direct violation of company policies, regardless of when it occurred.  

CFO Robert Swan is now the acting CEO while the board looks for a long-term candidate for the position.  

Tough Times for Intel 

This sudden change in leadership couldn’t come at a worse time for the company. They have led the market in processor manufacturing for years, but there are many threats to their dominance on the horizon. The looming specter of cloud processing and artificial intelligence have been hanging over the company for the past five years or so. More immediately, companies like Nvidia, Qualcomm and Apple have been making strides in their own processor production. Notably, AMD recently showed off a 32-core “Threadripper” processor that handily beat all of Intel’s strongest chips in benchmark tests.  

No company ever wants their CEO to be suddenly ousted amidst a small scandal. Intel, in particular, though, was in no place for this to occur. With the competition heating up and computing landscape changing, the last thing Intel needed was uncertainty in leadership. While this certainly doesn’t spell doom for the chip-making giant, it doesn’t bode well for investors. The competition is certainly sharpening their knives, though.