Intel CEO Brian Krzanich resigned suddenly after a "past consensual relationship with an Intel employee" came to light, the company said Thursday.
His unexpected exit comes after an internal and external investigation ordered by the company "confirmed a violation of Intel’s non-fraternization policy, which applies to all managers," Intel said in a statement.
"Given the expectation that all employees will respect Intel’s values and adhere to the company’s code of conduct, the board has accepted Mr. Krzanich’s resignation," Intel said.
Intel chief financial officer Robert Swan, a former CFO of eBay, was appointed as interim CEO.
Details of Krzanich's relationship were not immediately disclosed, including the identity of his romantic partner.
His departure comes amid heightened scrutiny of workplace relationships between powerful corporate executives and their colleagues. About 99% of organizations with workplace romance policies ban relationships between supervisors and people who report to them, according to the Society for Human Resource Management.
Krzanich became Intel's sixth CEO in May 2013 after a stint as chief operating officer. and extensive experience in various manufacturing roles.
As CEO, he tried to guide the tech giant along a growth path predicated on big data and self-driving cars. Last year, he led the company's $15 billion acquisition of autonomous vehicle chip maker Mobileye.
But he also had to grapple with security flaws in Intel's consumer device chips. He announced in January that the company would update its last five years of chips after concerns about their vulnerability to hacking emerged.
Intel's stock fell 2% to $52.40 in early trading.
Intel declined to make Krzanich available to comment.
“The board believes strongly in Intel’s strategy and we are confident in Bob Swan’s ability to lead the company as we conduct a robust search for our next CEO," Intel chairman Andy Bryant said in a statement. "Bob has been instrumental to the development and execution of Intel’s strategy, and we know the company will continue to smoothly execute. We appreciate Brian’s many contributions to Intel."
Although disruptive, Krzanich's exit is not considered to be a huge financial or strategic setback.
"We view Intel as a process driven company with a deep bench of CEO candidates that can continue to drive the corporate strategy," Stifel analyst Kevin Cassidy wrote.