Logitech shares fall after 'abrupt' resignation of CEO as firm struggles with falling earnings

Employing around 300 people in Ireland, Logitech's Cork base has been marked as a key office in the company's global footprint

Wed, 14 Jun, 2023 - 10:19

Emer Walsh

Logitech shares fell by more than 9% in early Wednesday trade following the abrupt resignation of long-standing chief executive, Bracken Darrell.

Stepping down with immediate effect, it was reported that Darrell would leave the company to pursue another opportunity, with Logitech board member, Guy Gecht stepping in as interim chief executive.

"I feel this is a good point to hand over leadership," Darrell said, adding he would remain a "customer, shareholder and fan" of the Swiss-American tech company.

Analysts were surprised by the late-night announcement after market close on Tuesday, with Michael Foeth of Swiss financial group, Vontobel saying the CEO's 'abrupt' departure "will impact investor sentiment and add near-term pressure on the shares," with Bracken being called "the face of Logitech."

The change in leadership comes after Logitech reported a 22% drop in fourth-quarter sales in May, with growing economic downturn continuing to hinder the firm from maintaining pandemic-era growth.

The firm's operating income fell by up to 70%, with earnings per share down by more than 41% in the most recent fiscal year.

Following its Q4 performance, the keyboard and accessories maker joined the running list of tech firms to announce widespread layoffs, with the company cutting around 300 of its 8,000 global employees.

Speaking to the Irish Examiner at the time, a spokesperson for Logitech confirmed the layoffs, adding that, "regrettably a number of employee roles were affected around the world, including a limited number from Ireland."

Logitech's strong presence in Cork dates back to 1988, with its Irish base now considered "a strategic centre," for the global company. Just recently, the firm moved to a new office in Mahon’s City Gate Plaza Two from its previous location at Cork Airport Business Park.

In 2021, the company announced the creation of 50 new jobs which would be implemented in the next three years, marking it as one of the key offices in Logitech’s global footprint.