Intel CEO Brian Krzanich Abruptly Resigns
Back in 2013, tech titan Intel, known for its motherboards, processors and embedded box PC in Thailand and across the world, hit a bit of a snag when its Chief Executive Office, Paul Otellini, resigned two years from his expected retirement date. Then COO Brian Krzanich took over, replacing Otellini, but now, it’s his time to follow his predecessor, leaving the company following policy violations against employee fraternization.
In the corporate world, it’s far more commonplace to resign for business reasons. In Krzanich’s case, he’s resigning because he broke company policy; Intel has recently received information that the CEO had a consensual relationship with another company employee, according to a company statement released on June 21, Thursday. Like most companies, Intel prohibits personnel in managerial positions to engage in relationship with their employees. On top of that, Krzanich is reportedly married.
His temporary replacement is Chief Financial Officer Bob Swan, who has been serving as the company’s CFO since 2016. Swan’s official Intel bio says that he’s an outsider, having spent 9 years as eBay’s CFO, with his only experience being the CEO of Webvan, which folded. Many are expecting Swan’s position to be temporary.
Kraznich had a fairly successful tenure during his time as CEO. Right before he took over, in the second quarter of 2013, the company’s PC group revenue was down, with the company’s total revenue sitting at $12.8 billion for that quarter. Since his appointment, the company’s profits have gone up, with Intel saying they expect their revenue to hit $16.9 billion for the quarter when they report in July. The company’s stock prices, meanwhile, have also doubled in that time.
That being said, Intel has some problems, still stuck at the 14-nm manufacturing level. Additionally, the company’s divisions for AI, sensors, embedded space and embedded box PC in Thailand and across the world, the Intel’s Internet of Thing Group and Programmable Solutions Group, still make less than a billion per quarter each.
Intel’s policy when it comes to finding a new CEO will be “Intel first”, adopted by Krzanich and former president Renee James. One of the candidates, Venkata (Murthy) M. Renduchintala, Group President of Intel’s Technology, Systems Architecture & Client Group, though he was hired from the outside, which may be a problem for him. Regardless, whoever will take Krzanich’s place will have to deal with the uncertainties plaguing the company.