Krzanich was replaced on Thursday (US time) by chief financial officer Robert Swan who will function as interim CEO.
In a statement, the company said that an ongoing internal and external investigation had confirmed Krzanich had violated the policy which applies to all managers.
In January, there were reports that Krzanich had sold a tranche of stock and netted a healthy profit on the same day that Intel reportedly warned its OEM partners about the Meltdown and Spectre processor flaws. The two flaws were disclosed in January.
It said Krzanich had given instructions on 30 October 2017 for the sale of the shares and that this transaction was the subject of at least one class action in the US.
When news of Krzanich's share sale first broke, the company said that the sale was not related to the two flaws, “Brian’s sale is unrelated,” Intel said at the time. Krzanich “continues to hold shares in line with corporate guidelines".
Intel faces more than 30 lawsuits in connection with the two Meltdown and Spectre vulnerabilities.
On Thursday, Intel chairman Andy Bryant said: “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.
"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.”
Intel said Swan would manage operations along with the senior leadership team. He has been CFO since October 2016 and leads the global finance, IT and corporate strategy organisations. He previously spent nine years as CFO of eBay, served as CFO of Electronic Data Systems and TRW and as CEO of Webvan Group.
Swan said: “Intel’s transformation to a data-centric company is well under way and our team is producing great products, excellent growth and outstanding financial results. I look forward to Intel continuing to win in the marketplace.”