& cplSiteName &

Intel CEO Resigns After Employee Relationship Revealed

Dan Jones

Intel's CEO, Brian Krzanich, has abruptly resigned over a relationship with an employee, the chipmaker said Thursday.

"Intel was recently informed that Mr. Krzanich had a past consensual relationship with an Intel employee," Intel Corp. (Nasdaq: INTC). said in a statement. "An ongoing investigation by internal and external counsel has confirmed a violation of Intel's non-fraternization policy, which applies to all managers."

The chipmaker's board has named CFO, Bob Swain, as interim CEO, effective immediately.

A longtime Intel employee, Krzanich became CEO in 2013. In recent years, he had developed a strategy to focus on the Internet of Things, 5G and the cloud, trying to move the processor maker beyond its PC roots. (See Intel to Lay Off 12%, Focus on IoT & Data Centers and Intel Kills Off Its Smartphone Chip Lines.)

Nonethless, Krzanich had spent a good deal of time putting out fires around Intel's PC and server chips in 2018, because of the global impact of the Spectre and Meltdown flaws, major security vulnerabilities discovered in its CPUs at the beginning of the year. (See Intel Shrugs Off Spectre Worries in Q4 and Intel: We've Patched Most Chips for 'Spectre' & 'Meltdown'.)

Intel investors are not happy about the surprise. Shares are down $0.82 (1.34%) to $52.67 this morning on the news.

— Dan Jones, Mobile Editor, Light Reading

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Joe Stanganelli
Joe Stanganelli,
User Rank: Light Sabre
7/9/2018 | 8:22:50 PM
Re: Corrections
@kq4ym: Fair point that correlation does not equal causation. It's worth noting, however, that we're talking more than 1.5%; Intel's stock continued a general slide for about week.

Since then, it has been on the upswing and has almost regained its value as of 6/21.

OTOH, the stock had been trending downward for two weeks preceding the announcement. (Coincidence, or tipoffs and light insider trading?)
User Rank: Light Sabre
7/9/2018 | 8:09:47 AM
Re: Corrections
It would be difficult to find is the news resulted in the stock movement, most likely it was just a normal blip in the often randomness of such things. Whether that or the myriad of other bits of the company will affect the price longterm remains to be seen of course.
Joe Stanganelli
Joe Stanganelli,
User Rank: Light Sabre
6/24/2018 | 10:46:12 PM
Down less than 1.5% doesn't sound too bad -- and I suspect an upward correction will happen soon (provided no surprises in Swain's interim oversight and the new CEO selection). That upward correction could even skew higher than necessary (temporarily) if the new CEO choice is exciting.
Featured Video
From The Founder
John Chambers is still as passionate about business and innovation as he ever was at Cisco, finds Steve Saunders.
Flash Poll
Upcoming Live Events
September 12, 2018, Los Angeles, CA
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 6, 2018, London, United Kingdom
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
Telecom Jargonosaurus Part 1: Repeat Offenders
Iain Morris, News Editor, 7/13/2018
Broadcom Buys CA – Huh?
Mitch Wagner, Executive Editor, Light Reading, 7/11/2018
Verizon Taps Malady as Acting CTO
Dan Jones, Mobile Editor, 7/12/2018
FCC's Rosenworcel: US 'Falling Behind' on 5G
Iain Morris, News Editor, 7/13/2018
Netflix Is Growing, but Don't Ask by How Much
Phil Harvey, US News Editor, 7/16/2018
Animals with Phones
Casual Tuesday Takes On New Meaning Click Here
When you forget your pants.
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed