Brian Krzanich, the CEO of Intel, resigned yesterday for a breach in the company's "non-fraternisation" policy.
This policy, which forbids managers at Intel from "fraternising" with anyone who directly or indirectly reports to them, has been in place since 2011. Official statements suggest that Krzanich had a consensual relationship with someone at the company in the past, which would be a breach of that policy.
In a statement, the company said that it was discovered that Krzanich had engaged in a consensual relationship, and that "given the expectation that all employees will respect Intel's values and adhere to the company's code of conduct," the board accepted Krzanich's resignation, effective immediately. He's also being removed from his position on the board of directors.
In the meantime, Intel's CFO Robert Swan has been named the interim CEO.
Shares took a hit in the aftermath of the news, with Intel's share price dropping two per cent. Krzanich has been with Intel since 1982, taking the CEO role in 2013. He was a large part of the company's acquisition of huge firms in the driverless car and AI space, and as a result has shaped the company's current efforts to expand beyond the well developed PC market.