Intel released an announcement this morning that Brian Krzanich has resigned. The Intel CEO stepped down from his position as well as from the board effective immediately. Bob Swan will take over duties as interim CEO. The press released cited Intel’s non-fraternization rules for employees as the basis for the resignation. Brian is married and has two children, so while the relationship is cited as consensual it goes against the basic rules of the company.
The same announcement also includes financial information pertaining to an increase of the estimate of Q2 earnings. Intel expects to earn in the $16.9B range with the rest of the year looking to be record breaking. This will certainly help soften the blow of the CEO resigning unexpectedly, but there were many in the financial community which did not expect Brian to last throughout the year due to issues with roadmap, manufacturing, and competition from the rest of the industry.
Under Krzanich Intel has thrived financially. The company has seen record revenue and profits throughout his tenure. 2018 does look to be the most successful year in the company’s history. The only downside so far has been the issues with 10nm manufacturing. While this will have no material effect on Intel’s performance this year, the mass production of competing products in 2019 using 7nm processes from TSMC, Samsung, and GLOBALFOUNDRIES will put more pressure on the company than it has seen in years.
Bob Swan will be in charge of finding the next CEO of Intel. No timeline has been announced for the search.