Intel CEO resigns after relationship with employee

By Ovunc Kutlu

NEW YORK (AA) - Global chipmaker Intel announced Thursday its CEO and board member Brian Krzanich has resigned after the company was informed he had a consensual relationship with an employee in the past.

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

CFO Robert Swan was named the company’s interim head, according to the statement.

Krzanich, 58, joined Intel in 1982 as an engineer and became its top executive in 2013.

Although Intel's biggest revenue comes from providing chipsets for data-centers, Krzanich was trying to expand Intel's presence into markets such as autonomous driving and artificial intelligence, experts said.

Intel shares fell more than 2 percent to $52.26 after closing Wednesday at $53.46.

The company said it has increased its financial forecast for the next quarter and expects "to deliver a record second-quarter, with revenues of approximately $16.9 billion."

The previous revenue estimate was $16.3 billion, according to first-quarter results announced April 26.

Intel will release second-quarter results July 26.