Intel CEO Brian Krzanich resigns, CFO will serve as interim chief

Intel CEO resigns.

Brian Krzanich is out as CEO of Intel.

The chip giant on Thursday said that Brian Krzanich had resigned, and that the board had named Chief Financial Officer Robert Swan as interim CEO. The board has begun a search for a permanent CEO, including both internal and external candidates.

The resignation comes after Krzanich disclosed a past consensual relationship with an Intel employee, and an investigation confirmed that it violated Intel's non-fraternization policy.

"We appreciate Brian's many contributions to Intel," Intel Chairman Andy Bryant said in the release. "The board believes strongly in Intel's strategy and we're confident in Bob Swan's ability to lead the company as we conduct a robust search for our next CEO."

The resignation marks an ignoble end to an executive whose chief legacy is the push to diversify one of Silicon Valley's biggest and most powerful players. Krzanich, who took the reins five years ago after serving as the operating chief, was considered a "safe pick." But he steered Intel through questions over whether the company could remain dominant as the world went more mobile, investing in everything from drones to virtual reality.

Not everything panned out, including its hasty retreat from VR. But under Krzanich, the company is positioned for a fresh start with the advent of next-generation 5G wireless technology, and has eked back into the mobile world as a supplier for Apple's iPhones.

Intel, which declined to comment further, believes that the transition to Swan will be smooth. As evidence, the company said it expects to reach a record second quarter with revenue of roughly $16.9 billion and earnings excluding one-time items of 99 cents a share. Intel will report full results on July 26.

The story is developing. Check back for updates.

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