Intel CEO Brian Krzanich quits over relationship with employee

Intel removed Brian Krzanich as chief executive officer after the chip maker learned he previously had a consensual relationship with an employee, a violation of the company’s policies.

Chief Financial Officer Robert Swan was made interim CEO while the board searches for a permanent replacement, the company said in a statement Thursday. Krzanich is the latest in a string of CEOs forced out for having an inappropriate relationship. Lululemon Athletica and Priceline Group both had to replace their leaders for similar reasons.

Krzanich’s exit throws into turmoil the leadership of a company that’s been a model of stability and organisation 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.

A change in leadership shouldn’t cause any major problems for Intel, said Kevin Cassidy, an analyst at Stifel Nicolaus & Co.

“Intel’s a big machine and one person isn’t going to change the strategy that the board and Brian was a part of,” Cassidy said.

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. Krzanich had been trying to remake Intel into a more general provider of chips, expanding into new markets such as industrial systems and self-driving cars, with the 2017 purchase of Mobileye for US$15.3 billion. The mission remains a work in progress; the data-centre chip business is still the biggest sales engine and will determine Intel’s success for the foreseeable future.