June 21 (UPI) — Chip-maker Intel said Thursday CEO Brian Krzanich has resigned amid allegations he violated the company’s non-fraternization policy.
The company said the resignation stemmed from a consensual relationship Krzanich, the company’s leader since May 2013, had with another Intel employee.
“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.
Chief Financial Officer Robert Swan will take over as CEO until a successor is found.
Intel’s shares fell nearly 2 percent Thursday afternoon on news of Krzanich’s resignation, to $52.40.
The company said it expects record second-quarter revenue of about $16.9 billion and adjusted trade earnings of 99 cents a share.
Intel was scrutinized earlier this year after it revealed security flaws in its chips months after the problems were identified by researchers.
Investors and lawmakers also questioned stock sales by Krzanich during months the company was aware of the problem but had not yet disclosed it.