06/21/2018

Intel Corp on Thursday said Chief Executive Officer Brian Krzanich has resigned, effective immediately, after a probe revealed that a past consensual relationship with an Intel employee violated company policy.

“An ongoing investigation by internal and external counsel has confirmed a violation of Intel’s non-fraternization policy, which applies to all managers,” the company said in a statement. 

The board named Chief Financial Officer Robert Swan as interim chief  officer. Krzanich had been in the role since May 2013.

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Intel said its board has begun a search for a permanent CEO, including both internal and external candidates, and will hire a an executive search firm to assist in the process.

The company also forecast better-than-expected second quarter revenue and profit.

Shares of the company rose 2.1 percent to $54.59 in premarket trading.

Intel said it expects quarterly revenue of about $16.9 billion and adjusted profit of about 99 cents per share. Analysts on average were expecting revenue of $16.29 billion and adjusted profit of 85 cents per share.

Reuters (Reporting by Munsif Vengattil in Bengaluru; Editing by Bernard Orr)